Hamada company uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). During 2020, Indirect manufacturing labor cost incurred $1,300,000. The journal entry is: a. Work-in-Process Control debit $1,300,000 and Wages payable control credit $1,300,000. b. Manufacturing Overhead Control debit $1,300,000 and Materials Control credit $1,300,000. c. Wages payable control debit $1,300,000 and Work-in-Process Control credit $1,300,000. d. Wages payable control debit $1,300,000 and Manufacturing Overhead Control credit $1,300,000.
Hamada company uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). During 2020, Indirect manufacturing labor cost incurred $1,300,000. The journal entry is: a. Work-in-Process Control debit $1,300,000 and Wages payable control credit $1,300,000. b. Manufacturing Overhead Control debit $1,300,000 and Materials Control credit $1,300,000. c. Wages payable control debit $1,300,000 and Work-in-Process Control credit $1,300,000. d. Wages payable control debit $1,300,000 and Manufacturing Overhead Control credit $1,300,000.
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Hamada company uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). During 2020, Indirect manufacturing labor cost incurred $1,300,000. The journal entry is:
a.
Work-in-Process Control debit $1,300,000 and Wages payable control credit $1,300,000.
b.
Manufacturing Overhead Control debit $1,300,000 and Materials Control credit $1,300,000.
c.
Wages payable control debit $1,300,000 and Work-in-Process Control credit $1,300,000.
d.
Wages payable control debit $1,300,000 and Manufacturing Overhead Control credit $1,300,000.
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