Question

In: Accounting

West Manufacturing Company uses a standard cost system in its accounting records. The standard costs for...

West Manufacturing Company uses a standard cost system in its accounting records. The standard costs for its one product are as follows:

                     Materials                                    8 pounds at $1.00 =   $ 8.00

                     Direct labor                              1.2 hours at $14.00 =     16.80

                     Variable overhead     1.2 direct-labor hours at $4.00 =       4.80

                     Fixed overhead         1.2 direct-labor hours at $6.00 =       7.20

                     Total standard cost                                                      $36.80

            The standard costs per unit are based on normal capacity of 3,600 direct-labor hours per month. In West’s accounting system, all inventories are recorded at standard costs and variances are recorded in the accounts. Thus, the materials price variance is based on purchases. Overhead variances are calculated using the four-variance method.

            Actual activity and costs for September are as follows:

            Production            2,850                                                                                      units

            Materials purchased            24,000                                                              lbs. at $0.95 per kg.

            Materials used in production            23,500                                                                                      lbs.

            Direct labor payroll            3,550                                                            hours at $14.30 per hr.

            Variable overhead                                                              $14,800

            Fixed overhead                                                                  $22,200

a. Prepare journal entries to record the actual variable overhead, variable overhead applied, and variable overhead variances for September (10pts).

b. Prepare journal entries to record the actual fixed overhead, fixed overhead applied and fixed overhead variances for September (10pts).

Solutions

Expert Solution


ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Cost Accounting Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct...
Cost Accounting Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials are purchased, and prorates all variances at year-end. Variances associated with direct materials are prorated based on the balances of direct materials in the appropriate accounts, and variances associated with direct labor and manufacturing overhead are prorated to Finished Goods Inventory and to Cost of Goods Sold (CGS) on the basis of the relative direct labor cost in these accounts at year-end. The...
Fisk Company uses a standard cost accounting system. During January, the company reported the following manufacturing...
Fisk Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances. Materials price variance $1,290 U Labor quantity variance $910 U Materials quantity variance 730 F Overhead variance 830 U Labor price variance 440 U In addition, 8,490 units of product were sold at $9 per unit. Each unit sold had a standard cost of $5. Selling and administrative expenses were $7,580 for the month. Prepare an income statement for management for the month...
Clothing manufactures embroidered jackets. The company uses a standard cost system to control manufacturing costs. The...
Clothing manufactures embroidered jackets. The company uses a standard cost system to control manufacturing costs. The following data represent the standard unit cost of a​ jacket:      Direct materials ( 3.0 sq. ft x $4.10 per sq. ft.). . . . $12.30 Direct labor ( 2.0 hours x $9.30 per hour). . . . . 18.60 Manufacturing overhead: Variable ( 2.0 hours x $0.66 per hour). . . . . . . . . . $1.32 Fixed ( 2.0 hours x...
Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order...
Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,000 units of Product B was received. The standard cost of one unit of Product B is as follows. Direct materials 3 pounds at $1.00 per pound $3.00 Direct labor 1.00 hour at $8.00 per hour 8.00 Overhead 2 hours (variable $4.00 per machine hour; fixed $2.50 per machine hour) 13.00 Standard cost per unit $24.00 Normal capacity for the...
Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order...
Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,000 units of Product B was received. The standard cost of one unit of Product B is as follows. Direct materials 3 pounds at $1.30 per pound $3.90 Direct labor 1.80 hour at $10.00 per hour 18.00 Overhead 2 hours (variable $4.40 per machine hour; fixed $3.40 per machine hour) 15.60 Standard cost per unit $37.50 Normal capacity for the...
West and Jones Granite Corp uses a standard cost system for its single product. The following...
West and Jones Granite Corp uses a standard cost system for its single product. The following data are available: ACTUAL for the current year: Purchase of raw materials (5,200 sq ft at $11.80) $61,360 Raw materials used 4,800 sq ft Direct Labor costs (22,000 at $13.80) $303,600 Actual variable overhead cost $64,250 Units produced 5,820 units Standards per unit of product: Raw materials 1.0 sq ft at $10.70/sq ft Direct labor 3.8 hours at $13.50/hr Variable overhead $2.75 per direct...
West and Jones Granite Corp uses a standard cost system for its single product. The following...
West and Jones Granite Corp uses a standard cost system for its single product. The following data are available: ACTUAL for the current year: Purchase of raw materials (5,200 sq ft at $11.80) $61,360 Raw materials used 4,800 sq ft Direct Labor costs (22,000 at $13.80) $303,600 Actual variable overhead cost $64,250 Units produced 5,820 units Standards per unit of product: Raw materials 1.0 sq ft at $10.70/sq ft Direct labor 3.8 hours at $13.50/hr Variable overhead $2.75 per direct...
Ferry Chemical uses a standard cost system to account for the costs of its production of...
Ferry Chemical uses a standard cost system to account for the costs of its production of Chemical X. Standards are 3.0 gallons of materials at $121 per gallon and 26 hours of labor at a standard wage rate of $28. During September, Ferry Chemical produced 3,250 gallons of Chemical X. Ferry Chemical purchased and used totaled 3,730 gallons at a total cost of $455,180. Payroll totaled $318,730 for 26,230 hours worked. a. Calculate the direct materials price variance. (Do not...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its production costs. The company uses a predetermined overhead rate based on direct labor-hours to apply overhead to individual jobs. The company prepared an estimate of overhead costs at different volumes for the current year as follows. Direct labor-hours 150,000 180,000 210,000 Variable overhead costs $ 1,200,000 $ 1,440,000 $ 1,680,000 Fixed overhead costs 612,000 612,000 612,000 Total overhead $ 1,812,000 $ 2,052,000 $ 2,292,000 The expected volume is 180,000 direct...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its production costs. The company uses a predetermined overhead rate based on direct labor-hours to apply overhead to individual jobs. The company prepared an estimate of overhead costs at different volumes for the current year as follows: Direct labor-hours 150,000 180,000 210,000 Variable overhead costs $ 1,050,000 $ 1,260,000 $ 1,470,000 Fixed overhead costs 684,000 684,000 684,000 Total overhead $ 1,734,000 $ 1,944,000 $ 2,154,000 The expected volume is 180,000 direct...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT