Provide a standard cost summary providing the standard unit cost.

Question

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Answer 1

Question

Chapter 8, Problem 3E

a.

To determine

Provide a standard cost summary providing the standard unit cost.

a.

Expert Solution

Explanation of Solution

Materials—2 lb @ $8	$16
Labor—1 hr @ $10	$10
Factory overhead ($4,000 ÷ 1,000 units)	$4
Standard unit cost	$30

Figure (1)

b.

To determine

Examine the variances for materials and labor.

b.

Expert Solution

Explanation of Solution

Calculate material price variance:

Material price variance = [(Actual Price−Standard Price) × Actual Quantity]= [($8.50−$8)× 1,900]= $950U

Calculate materials quantity variance:

Materials quantity variance = [(Actual Quantity-Standard Quantity) × Standard price]= [1,900 lb−(1,000lb × 2 pounds)]× $8=$800 F

Calculate Labor rate variance:

Labor rate variance = [(Actual Price−Standard Price) × Actual Quantity]= [($10.20−$10)× 900]= $180U

Calculate labor efficiency variance:

labor efficiency variance = [(Actual Quantity−Standard Quantity) × Standard price]= [900−(1,000 × 1lb)]× $10=$1,000 F

c.

To determine

Prepare journal entries.

c.

Expert Solution

Explanation of Solution

(1)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 2lb × $8)	$16,000
	Materials Price Variance (1,900 × $0.50)	$950
	Materials Quantity Variance (100 × $8)		$800
	Materials (2,000 × $8.50)		$16,150
	(to record the entry for direct materials cost when the materials are issued into production)

Table (1)

(2)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1 hr × $10)	$10,000
	Labor Rate Variance (900 × $.20)	$180
	Labor efficiency Variance (100 × $10)		$1,000
	Payroll (900 × $10.20)		$9,180
	(to record the entry for direct labor cost)

Table (2)

(3)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1hr × $10)	$4,000
	Applied Factory overhead		$4,000
	(to record the entry applying factory overhead to work in process)

Table (3)

d.

To determine

Prepare the journal entry.

d.

Expert Solution

Explanation of Solution

Case 1 and case 2:

Date	Account Title and Explanation	Debit ($)	Credit($)
	Finished Goods (1,000 × $30)	$30,000
	Work in process		$30,000
	(to record the entry for finished goods at standard cost)

Table (4)

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General Accounting

Financial accounting questions

The standard composition of workers and their wage rates for producing certain product during a given month are as follows:• 12 skilled workers @ OMR 8 per hour each• 8 semi-skilled workers @ OMR 6 per hour each• 10 unskilled workers @ OMR 4 per hour eachDuring the month, the actual composition of workers was:• 10 skilled workers @ OMR 9 per hour each• 6 semi-skilled workers @ OMR 5 per hour each• 8 unskilled workers @ OMR 3 per hour eachThe standard output of the group was expected to be 5 units per hour. However, the workers were unable to produce any output for 8 hours due to a power failure. The group of workers was engaged for 120 hours during the month, and 580 units of output were recorded calculate LCV, LRV, LEV, LIIV, LYV and LMV

Answer 2

Question

Chapter 8, Problem 3E

a.

To determine

Provide a standard cost summary providing the standard unit cost.

a.

Expert Solution

Explanation of Solution

Materials—2 lb @ $8	$16
Labor—1 hr @ $10	$10
Factory overhead ($4,000 ÷ 1,000 units)	$4
Standard unit cost	$30

Figure (1)

b.

To determine

Examine the variances for materials and labor.

b.

Expert Solution

Explanation of Solution

Calculate material price variance:

Material price variance = [(Actual Price−Standard Price) × Actual Quantity]= [($8.50−$8)× 1,900]= $950U

Calculate materials quantity variance:

Materials quantity variance = [(Actual Quantity-Standard Quantity) × Standard price]= [1,900 lb−(1,000lb × 2 pounds)]× $8=$800 F

Calculate Labor rate variance:

Labor rate variance = [(Actual Price−Standard Price) × Actual Quantity]= [($10.20−$10)× 900]= $180U

Calculate labor efficiency variance:

labor efficiency variance = [(Actual Quantity−Standard Quantity) × Standard price]= [900−(1,000 × 1lb)]× $10=$1,000 F

c.

To determine

Prepare journal entries.

c.

Expert Solution

Explanation of Solution

(1)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 2lb × $8)	$16,000
	Materials Price Variance (1,900 × $0.50)	$950
	Materials Quantity Variance (100 × $8)		$800
	Materials (2,000 × $8.50)		$16,150
	(to record the entry for direct materials cost when the materials are issued into production)

Table (1)

(2)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1 hr × $10)	$10,000
	Labor Rate Variance (900 × $.20)	$180
	Labor efficiency Variance (100 × $10)		$1,000
	Payroll (900 × $10.20)		$9,180
	(to record the entry for direct labor cost)

Table (2)

(3)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1hr × $10)	$4,000
	Applied Factory overhead		$4,000
	(to record the entry applying factory overhead to work in process)

Table (3)

d.

To determine

Prepare the journal entry.

d.

Expert Solution

Explanation of Solution

Case 1 and case 2:

Date	Account Title and Explanation	Debit ($)	Credit($)
	Finished Goods (1,000 × $30)	$30,000
	Work in process		$30,000
	(to record the entry for finished goods at standard cost)

Table (4)

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Answer 3

Question

Chapter 8, Problem 3E

a.

To determine

Provide a standard cost summary providing the standard unit cost.

a.

Expert Solution

Explanation of Solution

Materials—2 lb @ $8	$16
Labor—1 hr @ $10	$10
Factory overhead ($4,000 ÷ 1,000 units)	$4
Standard unit cost	$30

Figure (1)

b.

To determine

Examine the variances for materials and labor.

b.

Expert Solution

Explanation of Solution

Calculate material price variance:

Material price variance = [(Actual Price−Standard Price) × Actual Quantity]= [($8.50−$8)× 1,900]= $950U

Calculate materials quantity variance:

Materials quantity variance = [(Actual Quantity-Standard Quantity) × Standard price]= [1,900 lb−(1,000lb × 2 pounds)]× $8=$800 F

Calculate Labor rate variance:

Labor rate variance = [(Actual Price−Standard Price) × Actual Quantity]= [($10.20−$10)× 900]= $180U

Calculate labor efficiency variance:

labor efficiency variance = [(Actual Quantity−Standard Quantity) × Standard price]= [900−(1,000 × 1lb)]× $10=$1,000 F

c.

To determine

Prepare journal entries.

c.

Expert Solution

Explanation of Solution

(1)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 2lb × $8)	$16,000
	Materials Price Variance (1,900 × $0.50)	$950
	Materials Quantity Variance (100 × $8)		$800
	Materials (2,000 × $8.50)		$16,150
	(to record the entry for direct materials cost when the materials are issued into production)

Table (1)

(2)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1 hr × $10)	$10,000
	Labor Rate Variance (900 × $.20)	$180
	Labor efficiency Variance (100 × $10)		$1,000
	Payroll (900 × $10.20)		$9,180
	(to record the entry for direct labor cost)

Table (2)

(3)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1hr × $10)	$4,000
	Applied Factory overhead		$4,000
	(to record the entry applying factory overhead to work in process)

Table (3)

d.

To determine

Prepare the journal entry.

d.

Expert Solution

Explanation of Solution

Case 1 and case 2:

Date	Account Title and Explanation	Debit ($)	Credit($)
	Finished Goods (1,000 × $30)	$30,000
	Work in process		$30,000
	(to record the entry for finished goods at standard cost)

Table (4)

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Answer 4

Question

Chapter 8, Problem 3E

a.

To determine

Provide a standard cost summary providing the standard unit cost.

a.

Expert Solution

Explanation of Solution

Materials—2 lb @ $8	$16
Labor—1 hr @ $10	$10
Factory overhead ($4,000 ÷ 1,000 units)	$4
Standard unit cost	$30

Figure (1)

b.

To determine

Examine the variances for materials and labor.

b.

Expert Solution

Explanation of Solution

Calculate material price variance:

Material price variance = [(Actual Price−Standard Price) × Actual Quantity]= [($8.50−$8)× 1,900]= $950U

Calculate materials quantity variance:

Materials quantity variance = [(Actual Quantity-Standard Quantity) × Standard price]= [1,900 lb−(1,000lb × 2 pounds)]× $8=$800 F

Calculate Labor rate variance:

Labor rate variance = [(Actual Price−Standard Price) × Actual Quantity]= [($10.20−$10)× 900]= $180U

Calculate labor efficiency variance:

labor efficiency variance = [(Actual Quantity−Standard Quantity) × Standard price]= [900−(1,000 × 1lb)]× $10=$1,000 F

c.

To determine

Prepare journal entries.

c.

Expert Solution

Explanation of Solution

(1)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 2lb × $8)	$16,000
	Materials Price Variance (1,900 × $0.50)	$950
	Materials Quantity Variance (100 × $8)		$800
	Materials (2,000 × $8.50)		$16,150
	(to record the entry for direct materials cost when the materials are issued into production)

Table (1)

(2)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1 hr × $10)	$10,000
	Labor Rate Variance (900 × $.20)	$180
	Labor efficiency Variance (100 × $10)		$1,000
	Payroll (900 × $10.20)		$9,180
	(to record the entry for direct labor cost)

Table (2)

(3)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1hr × $10)	$4,000
	Applied Factory overhead		$4,000
	(to record the entry applying factory overhead to work in process)

Table (3)

d.

To determine

Prepare the journal entry.

d.

Expert Solution

Explanation of Solution

Case 1 and case 2:

Date	Account Title and Explanation	Debit ($)	Credit($)
	Finished Goods (1,000 × $30)	$30,000
	Work in process		$30,000
	(to record the entry for finished goods at standard cost)

Table (4)

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Answer 5

Chapter 8, Problem 3E

a.

To determine

Provide a standard cost summary providing the standard unit cost.

a.

Expert Solution

Explanation of Solution

Materials—2 lb @ $8	$16
Labor—1 hr @ $10	$10
Factory overhead ($4,000 ÷ 1,000 units)	$4
Standard unit cost	$30

Figure (1)

b.

To determine

Examine the variances for materials and labor.

b.

Expert Solution

Explanation of Solution

Calculate material price variance:

Material price variance = [(Actual Price−Standard Price) × Actual Quantity]= [($8.50−$8)× 1,900]= $950U

Calculate materials quantity variance:

Materials quantity variance = [(Actual Quantity-Standard Quantity) × Standard price]= [1,900 lb−(1,000lb × 2 pounds)]× $8=$800 F

Calculate Labor rate variance:

Labor rate variance = [(Actual Price−Standard Price) × Actual Quantity]= [($10.20−$10)× 900]= $180U

Calculate labor efficiency variance:

labor efficiency variance = [(Actual Quantity−Standard Quantity) × Standard price]= [900−(1,000 × 1lb)]× $10=$1,000 F

c.

To determine

Prepare journal entries.

c.

Expert Solution

Explanation of Solution

(1)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 2lb × $8)	$16,000
	Materials Price Variance (1,900 × $0.50)	$950
	Materials Quantity Variance (100 × $8)		$800
	Materials (2,000 × $8.50)		$16,150
	(to record the entry for direct materials cost when the materials are issued into production)

Table (1)

(2)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1 hr × $10)	$10,000
	Labor Rate Variance (900 × $.20)	$180
	Labor efficiency Variance (100 × $10)		$1,000
	Payroll (900 × $10.20)		$9,180
	(to record the entry for direct labor cost)

Table (2)

(3)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1hr × $10)	$4,000
	Applied Factory overhead		$4,000
	(to record the entry applying factory overhead to work in process)

Table (3)

d.

To determine

Prepare the journal entry.

d.

Expert Solution

Explanation of Solution

Case 1 and case 2:

Date	Account Title and Explanation	Debit ($)	Credit($)
	Finished Goods (1,000 × $30)	$30,000
	Work in process		$30,000
	(to record the entry for finished goods at standard cost)

Table (4)

Answer 6

Chapter 8, Problem 3E

a.

To determine

Provide a standard cost summary providing the standard unit cost.

a.

Expert Solution

Explanation of Solution

Materials—2 lb @ $8	$16
Labor—1 hr @ $10	$10
Factory overhead ($4,000 ÷ 1,000 units)	$4
Standard unit cost	$30

Figure (1)

Answer 7

Chapter 8, Problem 3E

a.

To determine

Provide a standard cost summary providing the standard unit cost.

Answer 8

a.

Expert Solution

Explanation of Solution

Materials—2 lb @ $8	$16
Labor—1 hr @ $10	$10
Factory overhead ($4,000 ÷ 1,000 units)	$4
Standard unit cost	$30

Figure (1)

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

To determine

Examine the variances for materials and labor.

b.

Expert Solution

Explanation of Solution

Calculate material price variance:

Material price variance = [(Actual Price−Standard Price) × Actual Quantity]= [($8.50−$8)× 1,900]= $950U

Calculate materials quantity variance:

Materials quantity variance = [(Actual Quantity-Standard Quantity) × Standard price]= [1,900 lb−(1,000lb × 2 pounds)]× $8=$800 F

Calculate Labor rate variance:

Labor rate variance = [(Actual Price−Standard Price) × Actual Quantity]= [($10.20−$10)× 900]= $180U

Calculate labor efficiency variance:

labor efficiency variance = [(Actual Quantity−Standard Quantity) × Standard price]= [900−(1,000 × 1lb)]× $10=$1,000 F

Answer 13

b.

To determine

Examine the variances for materials and labor.

Answer 14

b.

Expert Solution

Explanation of Solution

Calculate material price variance:

Material price variance = [(Actual Price−Standard Price) × Actual Quantity]= [($8.50−$8)× 1,900]= $950U

Calculate materials quantity variance:

Materials quantity variance = [(Actual Quantity-Standard Quantity) × Standard price]= [1,900 lb−(1,000lb × 2 pounds)]× $8=$800 F

Calculate Labor rate variance:

Labor rate variance = [(Actual Price−Standard Price) × Actual Quantity]= [($10.20−$10)× 900]= $180U

Calculate labor efficiency variance:

labor efficiency variance = [(Actual Quantity−Standard Quantity) × Standard price]= [900−(1,000 × 1lb)]× $10=$1,000 F

Answer 15

b.

Expert Solution

Answer 16

b.

Expert Solution

Answer 17

Expert Solution

Answer 18

c.

To determine

Prepare journal entries.

c.

Expert Solution

Explanation of Solution

(1)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 2lb × $8)	$16,000
	Materials Price Variance (1,900 × $0.50)	$950
	Materials Quantity Variance (100 × $8)		$800
	Materials (2,000 × $8.50)		$16,150
	(to record the entry for direct materials cost when the materials are issued into production)

Table (1)

(2)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1 hr × $10)	$10,000
	Labor Rate Variance (900 × $.20)	$180
	Labor efficiency Variance (100 × $10)		$1,000
	Payroll (900 × $10.20)		$9,180
	(to record the entry for direct labor cost)

Table (2)

(3)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1hr × $10)	$4,000
	Applied Factory overhead		$4,000
	(to record the entry applying factory overhead to work in process)

Table (3)

Answer 19

c.

To determine

Prepare journal entries.

Answer 20

c.

Expert Solution

Explanation of Solution

(1)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 2lb × $8)	$16,000
	Materials Price Variance (1,900 × $0.50)	$950
	Materials Quantity Variance (100 × $8)		$800
	Materials (2,000 × $8.50)		$16,150
	(to record the entry for direct materials cost when the materials are issued into production)

Table (1)

(2)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1 hr × $10)	$10,000
	Labor Rate Variance (900 × $.20)	$180
	Labor efficiency Variance (100 × $10)		$1,000
	Payroll (900 × $10.20)		$9,180
	(to record the entry for direct labor cost)

Table (2)

(3)

Date	Account Title and Explanation	Debit ($)	Credit($)
	Work in Process (1,000 × 1hr × $10)	$4,000
	Applied Factory overhead		$4,000
	(to record the entry applying factory overhead to work in process)

Table (3)

Answer 21

c.

Expert Solution

Answer 22

c.

Expert Solution

Answer 23

Expert Solution

Answer 24

d.

To determine

Prepare the journal entry.

d.

Expert Solution

Explanation of Solution

Case 1 and case 2:

Date	Account Title and Explanation	Debit ($)	Credit($)
	Finished Goods (1,000 × $30)	$30,000
	Work in process		$30,000
	(to record the entry for finished goods at standard cost)

Table (4)

Answer 25

d.

To determine

Prepare the journal entry.

Answer 26

d.

Expert Solution

Explanation of Solution

Case 1 and case 2:

Date	Account Title and Explanation	Debit ($)	Credit($)
	Finished Goods (1,000 × $30)	$30,000
	Work in process		$30,000
	(to record the entry for finished goods at standard cost)