Required information [The following information applies to the questions displayed below.] Saskatewan Can 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, 0.10 hour Rate, $5.00 per hour Quantity, 3 kilograms Price, $0.30 per kilogram Actual material purchases amounted to 34,000 kilograms at $0.325 per kilogram. Actual costs incurred in the production of 10,000 units were as follows: Direct labor: $6,120 for 1,200 hours $10,075 for 31,000 kilograms Direct material: Required: Post the journal entries prepared above to the appropriate T-accounts below. Be sure to select from the dropdown menu the transaction number associated with each amount posted.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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why is 10,200 wrong for raw material inventory

Required information
[The following information applies to the questions displayed below.]
Saskatewan Can 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, 0.10 hour
Rate, $5.00 per hour
Quantity, 3 kilograms
Price, $0.30 per kilogram
Actual material purchases amounted to 34,000 kilograms at $0.325 per kilogram. Actual costs incurred in the production
of 10,000 units were as follows:
Direct labor:
$6,120 for 1,200 hours
$10,075 for 31,000 kilograms
Direct material:
Required:
Post the journal entries prepared above to the appropriate T-accounts below. Be sure to select from the dropdown menu the
transaction number associated with each amount posted.
Answer is complete but not entirely correct.
Raw-Material Inventory
Direct-Material Purchase Price Variance
1.
10,200
10,200 X 2.
1.
850
850 O 4.
Work-in-Process Inventory
Direct-Material Quantity Variance
2.
9,000 O
2.
300 O
300 O 4.
3.
5,000 O
Accounts Payable
Direct-Labor Rate Variance
11,050 O 1.
3.
120 V
120 O 4.
Wages Payable
Direct-Labor Efficiency Variance
6,120 O 3.
3.
1,000 O
1,000 O 14.
Cost of Goods Sold
4.
2,270 O
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Saskatewan Can 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, 0.10 hour Rate, $5.00 per hour Quantity, 3 kilograms Price, $0.30 per kilogram Actual material purchases amounted to 34,000 kilograms at $0.325 per kilogram. Actual costs incurred in the production of 10,000 units were as follows: Direct labor: $6,120 for 1,200 hours $10,075 for 31,000 kilograms Direct material: Required: Post the journal entries prepared above to the appropriate T-accounts below. Be sure to select from the dropdown menu the transaction number associated with each amount posted. Answer is complete but not entirely correct. Raw-Material Inventory Direct-Material Purchase Price Variance 1. 10,200 10,200 X 2. 1. 850 850 O 4. Work-in-Process Inventory Direct-Material Quantity Variance 2. 9,000 O 2. 300 O 300 O 4. 3. 5,000 O Accounts Payable Direct-Labor Rate Variance 11,050 O 1. 3. 120 V 120 O 4. Wages Payable Direct-Labor Efficiency Variance 6,120 O 3. 3. 1,000 O 1,000 O 14. Cost of Goods Sold 4. 2,270 O
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