Ingabire Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Direct Material: Quantity, 0.29 hour Quantity, 8 kilograms Rate, $14.50 per hour Price, $0.68 per kilogram Actual material purchases amounted to 412,800 kilograms at $0.700 per kilogram. Actual costs incurred in the production of 48,000 units were as follows: Direct labor: $228,096 for 15,360 hours Direct material: $273,840 for 391,200 kilograms Required: Post the journal entries prepared above to the appropriate T-accounts below. (a) Raw Material inventory (b) Work-in-process Inventory (Accounts Payable (d) Wages Payable (e)direct labour rate variance (f)direct material quantity variance (g) direct labour efficiency variance
Ingabire Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Direct Material: Quantity, 0.29 hour Quantity, 8 kilograms Rate, $14.50 per hour Price, $0.68 per kilogram Actual material purchases amounted to 412,800 kilograms at $0.700 per kilogram. Actual costs incurred in the production of 48,000 units were as follows: Direct labor: $228,096 for 15,360 hours Direct material: $273,840 for 391,200 kilograms Required: Post the journal entries prepared above to the appropriate T-accounts below. (a) Raw Material inventory (b) Work-in-process Inventory (Accounts Payable (d) Wages Payable (e)direct labour rate variance (f)direct material quantity variance (g) direct labour efficiency variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ingabire Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller.
| Direct Labor: | Direct Material: |
|---|---|
| Quantity, 0.29 hour | Quantity, 8 kilograms |
| Rate, $14.50 per hour | Price, $0.68 per kilogram |
Actual material purchases amounted to 412,800 kilograms at $0.700 per kilogram. Actual costs incurred in the production of 48,000 units were as follows:
| Direct labor: | $228,096 for 15,360 hours |
|---|---|
| Direct material: | $273,840 for 391,200 kilograms |
Required:
(a) Raw Material inventory (b) Work-in-process Inventory (Accounts Payable (d) Wages Payable (e)direct labour rate variance (f)direct material quantity variance (g) direct labour efficiency variance
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