Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($405,000+ 900,000 units) Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,000,000 11,500,000 $ 7,360,000 $ 345,000 3,398,250 $ 293,250 $ 388,000 Standard Quantity 12 square foot 0.6 hour 0.6 hour Standard Price (Rate) $ 0.66 per square foot $10.50 per hour $ 0.75 per hour Required: 1., 2., 3., & 4. Prepare the journal entry to record Parker Plastic's direct materials, direct labor, variable overhead, and fixed overhead costs and related variances. Assume the company purchases raw materials as needed and does not maintain any ending inventories. For fixed overhead transactions, assume overhead is applied based on budgeted production. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Standard Unit Cost $7.92 6.30 0.45 0.45

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year
follows:
Direct materials (plastic)
Direct labor
Variable manufacturing overhead (based on direct labor hours)
Fixed manufacturing overhead ($405,000 ÷ 900,000 units)
Parker Plastic had the following actual results for the past year:
Number of units produced and sold
Number of square feet of plastic used
Cost of plastic purchased and used
Number of labor hours worked
Direct labor cost
Variable overhead cost
Fixed overhead cost
1,000,000
11,500,000
$ 7,360,000
345,000
$ 3,398,250
$ 293,250
$ 388,000
Standard Quantity
12 square foot
0.6 hour
0.6 hour
Standard Price (Rate)
$ 0.66 per square foot
$10.50 per hour
$ 0.75 per hour
Required:
1., 2., 3., & 4. Prepare the journal entry to record Parker Plastic's direct materials, direct labor, variable overhead, and fixed overhead
costs and related variances. Assume the company purchases raw materials as needed and does not maintain any ending inventories.
For fixed overhead transactions, assume overhead is applied based on budgeted production.
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
Standard Unit
Cost
$7.92
6.30
0.45
0.45
Transcribed Image Text:Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($405,000 ÷ 900,000 units) Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,000,000 11,500,000 $ 7,360,000 345,000 $ 3,398,250 $ 293,250 $ 388,000 Standard Quantity 12 square foot 0.6 hour 0.6 hour Standard Price (Rate) $ 0.66 per square foot $10.50 per hour $ 0.75 per hour Required: 1., 2., 3., & 4. Prepare the journal entry to record Parker Plastic's direct materials, direct labor, variable overhead, and fixed overhead costs and related variances. Assume the company purchases raw materials as needed and does not maintain any ending inventories. For fixed overhead transactions, assume overhead is applied based on budgeted production. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Standard Unit Cost $7.92 6.30 0.45 0.45
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 4 images

Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education