GEN COMBO LOOSELEAF INTRODUCTION TO MANAGERIAL ACCOUNTING; CONNECT AC

8th Edition

ISBN: 9781260259179

Author: BREWER

Publisher: MCG

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Textbook Question

Chapter 9.B, Problem 3E

Standard Cost Flows
Bowen Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. Its predetennincd overhead rate includes $1.000,000 of fixed overhead in the numerator and 50.000 direct Labor-hours in the denominator. The company purchased (with cash) and used 30,000 yards of raw materials at a cost of $9.80 per yard. Its direct laborers worked 20,000 hours and were paid a total of 5290.000. The company page 461 started and completed 8.100 units of finished goods during the period. Bowens standard cost card for its only product is as follows:

Chapter 9.B, Problem 3E, Standard Cost Flows Bowen Company manufactures one product, it does not maintain any beginning or

Required:
1. When recording the raw material purchases:
a. The Raw Materials inventory ill increase (decrease) by how much?
b. The Cash il1 increase (decrease) by how much’
2. When recording the raw materials used in production:
a. The Raw Materials inventory will increase (decrease) by how much?
b. The Work in Process inventory will increase (decrease) by how much?
3. When recording the direct labor costs added to production:
a. The Work in Process inventors will increase (decrease) by how much?
b. The Cash will increase (decrease) by how much?
4. When applying fixed manufacturing overhead to production, the Work in Process inventory will increase (decrease) by how much?
5. When transferring manufacturing costs from Work in Process to Finished Goods, the Finished Goods inventory will increase (decrease) by how much?

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Chapter 9.B, Problem 2E

Chapter 9.B, Problem 4E

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Chapter 9 Solutions

GEN COMBO LOOSELEAF INTRODUCTION TO MANAGERIAL ACCOUNTING; CONNECT AC

Ch. 9.A - Fixed Overhead Variances Primara Corporation has a...Ch. 9.A - Predetermined Overhead Rate: Overhead Variances...Ch. 9.A - Applying Overhead in a Standard Costing System...Ch. 9.A - Prob. 4E Ch. 9.A - Using Fixed Overhead Variances The standard cost...Ch. 9.A - Prob. 6E Ch. 9.A - Relations Among Fixed Overhead Variances Selected...Ch. 9.A - Applying Overhead; Overhead Variances Lane Company...Ch. 9.A - Applying Overhead; Overhead Variances Chilczuk....Ch. 9.A - Comprehensive Standard Cost Variances "Wonderful!...

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Solution Summary: The author explains that raw material inventory is debited, and cash/creditor is credited. When raw materials are purchased for cash, inventory increases and decreases.

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