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c. Prepare journal entries to record the transfer of all completed units to Finished Goods Inventory and the subsequent sale of 8,400 units on account at $54 each (assume no beginning finished goods inventory). General Journal Description To record completion ofunits To record sale ofunits To record cost ofunits <▶ ¶ A Debit

c. Prepare journal entries to record the transfer of all completed units to Finished Goods Inventory and the subsequent sale of 8,400 units on account at $54 each (assume no beginning finished goods inventory). General Journal Description To record completion ofunits To record sale ofunits To record cost ofunits <▶ ¶ A Debit

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3PB: Direct materials, direct labor, and factory overhead cost variance analysis Road Gripper Tire Co....
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c. Prepare journal entries to record the transfer of all completed units to Finished Goods Inventory and the subsequent sale of 8,400 units on account at $54 each (assume no beginning finished goods inventory). General Journal Description To record completion ofunits To record sale ofunits To record cost ofunits <▶ Debit
Transcribed Image Text:c. Prepare journal entries to record the transfer of all completed units to Finished Goods Inventory and the subsequent sale of 8,400 units on account at $54 each (assume no beginning finished goods inventory). General Journal Description To record completion ofunits To record sale ofunits To record cost ofunits <▶ Debit
Variances, Entries, and Income Statement A summary of Martindale Company's manufacturing variance report for May follows: Direct material Direct labor Variable overhead Fixed overhead Total Standard Costs (9,200 units) $38,640 193,200 22,080 9,660 $263,580 Actual Costs (9,200 units) Variances $41,760 $3,120 U 191,760 1,440 F 23,230 1,150 U 9,660 $266,410 $2,830 U Standard materials cost per unit of product is 0.5 pounds at $8.40 per pound, and standard direct labor cost is 1.5 hours at $14.00 per hour. The total actual materials cost represents 4,800 pounds purchased at $8.70 per pound. Total actual labor cost represents 14,100 hours at $13.60 per hour. According to standards, variable overhead rate is applied at $1.60 per direct labor hour (based on a normal capacity of 15,000 direct labor hours or 10,000 units of product). Assume that all fixed overhead is applied to work-in-progress inventory.
Transcribed Image Text:Variances, Entries, and Income Statement A summary of Martindale Company's manufacturing variance report for May follows: Direct material Direct labor Variable overhead Fixed overhead Total Standard Costs (9,200 units) $38,640 193,200 22,080 9,660 $263,580 Actual Costs (9,200 units) Variances $41,760 $3,120 U 191,760 1,440 F 23,230 1,150 U 9,660 $266,410 $2,830 U Standard materials cost per unit of product is 0.5 pounds at $8.40 per pound, and standard direct labor cost is 1.5 hours at $14.00 per hour. The total actual materials cost represents 4,800 pounds purchased at $8.70 per pound. Total actual labor cost represents 14,100 hours at $13.60 per hour. According to standards, variable overhead rate is applied at $1.60 per direct labor hour (based on a normal capacity of 15,000 direct labor hours or 10,000 units of product). Assume that all fixed overhead is applied to work-in-progress inventory.
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