Aurora Sports Company is a leading helmet manufacturer. It produces a variety of different
helmet styles, but its standard bike helmet requires 1.5 lb. of direct materials (DM), .5 hours of direct labor (DL) time, and 2.5 hours of machine time. MOH costs are applied based on machine hours. DM is expected to cost $14.00 per pound, DL is budgeted at $10 per hour, and cost of machine time is estimated at $2/machine hour for variable-MOH and $4/machine hour for fixed-MOH. The company purchased 30 pounds of materials on account for $450. Production was started on 15 helmets, using 24 pounds of direct materials, 9 direct labor hours at a total cost of $99, and 38 machine hours. Prepare the journal entries for the purchase of the materials and the costs incurred in production of the 15 bike helmets assuming Aurora Sports Company uses standard costing. (Credit MOH costs to Accounts Payable)

Question

Aurora Sports Company is a leading helmet manufacturer. It produces a variety of different 
helmet styles, but its standard bike helmet requires 1.5 lb. of direct materials (DM), .5 hours of direct labor (DL) time, and 2.5 hours of machine time. MOH costs are applied based on machine hours. DM is expected to cost $14.00 per pound, DL is budgeted at $10 per hour, and cost of machine time is estimated at $2/machine hour for variable-MOH and $4/machine hour for fixed-MOH. The company purchased 30 pounds of materials on account for $450. Production was started on 15 helmets, using 24 pounds of direct materials, 9 direct labor hours at a total cost of $99, and 38 machine hours. Prepare the journal entries for the purchase of the materials and the costs incurred in production of the 15 bike helmets assuming Aurora Sports Company uses standard costing. (Credit MOH costs to Accounts Payable)

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The Answer of Aurora Sports Company is a leading helmet manufacturer. It produces a variety of different 
helmet styles, but its standard bike helmet requires 1.5 lb. of direct materials (DM), .5 hours of direct labor (DL) time, and 2.5 hours of machine time. MOH costs are applied based on machine hours. DM is expected to cost $14.00 per pound, DL is budgeted at $10 per hour, and cost of machine time is estimated at $2/machine hour for variable-MOH and $4/machine hour for fixed-MOH. The company purchased 30 pounds of materials on account for $450. Production was started on 15 helmets, using 24 pounds of direct materials, 9 direct labor hours at a total cost of $99, and 38 machine hours. Prepare the journal entries for the purchase of the materials and the costs incurred in production of the 15 bike helmets assuming Aurora Sports Company uses standard costing. (Credit MOH costs to Accounts Payable)

Aurora Sports Company Is a Leading Helmet Manufacturer