Wallace Inc. uses a standard cost system and has provided the following information: Budgeted production = 6,000 units Prepare the journal entries to record the following transactions. Assume Wallace Inc. does not maintain inventories other than direct materials.
a. Purchase of direct materials on account
b. Issuance of direct materials to production
c. Incurrence of direct labor
d. Incurrence and application of variable overhead.
e. Incurrence and application of fixed overhead

Question

Wallace Inc. uses a standard cost system and has provided the following information:  Budgeted production = 6,000 units  Prepare the journal entries to record the following transactions. Assume Wallace Inc. does not maintain inventories other than direct materials.
a. Purchase of direct materials on account
b. Issuance of direct materials to production
c. Incurrence of direct labor
d. Incurrence and application of variable overhead.
e. Incurrence and application of fixed overhead

Quizplus · Accepted Answer

The Answer of Wallace Inc. uses a standard cost system and has provided the following information:  Budgeted production = 6,000 units  Prepare the journal entries to record the following transactions. Assume Wallace Inc. does not maintain inventories other than direct materials.
a. Purchase of direct materials on account
b. Issuance of direct materials to production
c. Incurrence of direct labor
d. Incurrence and application of variable overhead.
e. Incurrence and application of fixed overhead