Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs. Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable. To calculate: To prepare the journal entry to charge direct materials to work in process inventory and record the materials variance of Hart Company.

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Answer 1

Question

Chapter 23, Problem 14E

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the journal entry to charge direct materials to work in process inventory and record the materials variance of Hart Company.

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the adjusting journal entry to close the variance accounts at period end.

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Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Kyan Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets $ 810,000 $ 886,200 Cash $ 18,500 $ 32,000 Accounts receivable, net 36,400 84,340 590,100 7,600 644,500 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 6,100 330,000 52,400 132,500 7,600 305,400 $ 475,340 $ 529,900 Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets $ 71,340 82,800 $ 98,300 117,000 170,000 151,200 226,000 88,600 Common stock, $5 par value $ 475,340 $ 529,900 Retained earnings 14,000 15,569…

Question: Record the purchase of equipment in a general journal format. • July 1, 2021- Signed a lease for an office and issued Check 101 for $15,600 to pay the rent in advance for six months. • July 1, 2021- Borrowed money from Bancorp West by issuing a four-month, 4.5 percent note for $40,000; received $39,400 because the bank deducted the interest in advance. • July 1, 2021- Signed an agreement with Johnson Ventures to provide financial services for one year at $6,000 per month; received the entire fee of $72,000 in advance. The $72,000 was credited to Unearned Financial Service Fees. • July 1, 2021- Purchased office equipment for $15,900 from Office Outfitters; issued a two-month, 6 percent note in payment. The equipment is estimated to have a useful life of five years and a $1,500 salvage value. The equipment will be depreciated using the straight-line method. • July 1, 2021- Purchased a one-year insurance policy and issued Check 102 for $1,860 to pay the entire…

Question: Record the fees received in advance in a general journal format. • July 1, 2021- Signed a lease for an office and issued Check 101 for $15,600 to pay the rent in advance for six months. • July 1, 2021- Borrowed money from Bancorp West by issuing a four-month, 4.5 percent note for $40,000; received $39,400 because the bank deducted the interest in advance. • July 1, 2021- Signed an agreement with Johnson Ventures to provide financial services for one year at $6,000 per month; received the entire fee of $72,000 in advance. The $72,000 was credited to Unearned Financial Service Fees. • July 1, 2021- Purchased office equipment for $15,900 from Office Outfitters; issued a two-month, 6 percent note in payment. The equipment is estimated to have a useful life of five years and a $1,500 salvage value. The equipment will be depreciated using the straight-line method. • July 1, 2021- Purchased a one-year insurance policy and issued Check 102 for $1,860 to pay the…

Answer 2

Question

Chapter 23, Problem 14E

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the journal entry to charge direct materials to work in process inventory and record the materials variance of Hart Company.

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the adjusting journal entry to close the variance accounts at period end.

Expert Solution & Answer

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Answer 3

Question

Chapter 23, Problem 14E

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the journal entry to charge direct materials to work in process inventory and record the materials variance of Hart Company.

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the adjusting journal entry to close the variance accounts at period end.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 23, Problem 14E

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the journal entry to charge direct materials to work in process inventory and record the materials variance of Hart Company.

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the adjusting journal entry to close the variance accounts at period end.

Expert Solution & Answer

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Answer 5

Chapter 23, Problem 14E

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the journal entry to charge direct materials to work in process inventory and record the materials variance of Hart Company.

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the adjusting journal entry to close the variance accounts at period end.

Answer 6

Chapter 23, Problem 14E

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the journal entry to charge direct materials to work in process inventory and record the materials variance of Hart Company.

Answer 7

Chapter 23, Problem 14E

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the journal entry to charge direct materials to work in process inventory and record the materials variance of Hart Company.

Answer 8

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the adjusting journal entry to close the variance accounts at period end.

Answer 9

To determine

Introduction:

Standard costs are the preset costs under normal working conditions that are usually determined through personnel, accounting and engineering studies. Standard costs are usually used for direct materials, labor and overhead costs.

Cost variance is an analysis of the difference between actual cost and the standard costs. The cost variance can be either favorable or unfavorable.

To calculate:

To prepare the adjusting journal entry to close the variance accounts at period end.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 23 - Prob. 1DQ Ch. 23 - Prob. 2DQ Ch. 23 - Prob. 3DQ Ch. 23 - Prob. 4DQ Ch. 23 - Prob. 5DQ Ch. 23 - Prob. 6DQ Ch. 23 - Prob. 7DQ Ch. 23 - Prob. 8DQ Ch. 23 - Prob. 9DQ Ch. 23 - Prob. 10DQ

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