Lehman Pottery Company manufactures clay molded pottery on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production.

Required:
Prepare general journal entries to record:
1. The actual Assembly Department's conversion costs for the month assuming conversion costs are 10 percent higher than expected.
2. The assignment of conversion costs to work-in-process inventory, and the conversion-cost variances of the Assembly Department assuming that conversion costs are 10 percent higher than expected.
3. The direct materials requisitions for the work-in-process inventory and direct materials variances assuming that the Assembly department used 10 percent less materials than expected.

Question

Lehman Pottery Company manufactures clay molded pottery on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production.

Required:
Prepare general journal entries to record:
1. The actual Assembly Department's conversion costs for the month assuming conversion costs are 10 percent higher than expected.
2. The assignment of conversion costs to work-in-process inventory, and the conversion-cost variances of the Assembly Department assuming that conversion costs are 10 percent higher than expected.
3. The direct materials requisitions for the work-in-process inventory and direct materials variances assuming that the Assembly department used 10 percent less materials than expected.

Quizplus · Accepted Answer

The Answer of Lehman Pottery Company manufactures clay molded pottery on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production.

Required:
Prepare general journal entries to record:
1. The actual Assembly Department's conversion costs for the month assuming conversion costs are 10 percent higher than expected.
2. The assignment of conversion costs to work-in-process inventory, and the conversion-cost variances of the Assembly Department assuming that conversion costs are 10 percent higher than expected.
3. The direct materials requisitions for the work-in-process inventory and direct materials variances assuming that the Assembly department used 10 percent less materials than expected.

Lehman Pottery Company Manufactures Clay Molded Pottery on an Assembly