Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 18

Computing and Journalizing Cost Variances
Hans Enterprises is a large producer of birdseed. During June, the company produced 160 batches of crow bait. Each batch weighs 1,000 pounds. To produce this quantity of output, the company purchased and used 170,000 pounds of direct materials at a cost of $816,000. It also incurred direct labor costs of $20,000 for the 2,500 hours worked by employees on the crow bait crew. Manufacturing overhead incurred at the crow bait plant during June totaled $4,200, of which $3,100 was considered fixed. Hans's standard cost information for each 1,000-pound batch of crow bait is as follows:

Instructions
a. Compute the materials price and quantity variances.
b. Compute the labor rate and efficiency variances.
c. Compute the manufacturing overhead spending and volume variances.
d. Record the journal entry to charge materials (at standard) to Work in Process.
e. Record the journal entry to charge direct labor (at standard) to Work in Process.
f. Record the journal entry to charge manufacturing overhead (at standard) to Work in Process.
g. Record the journal entry to transfer the 160 batches of crow bait produced in June to Finished Goods.
h. Record the journal entry to close any over- or underapplied overhead to Cost of Goods Sold.