Emerging Dock Company manufactures boat docks 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.
Data for the Assembly Department for May 2017 are:

Costs for May:

Which of the following journal entries records the total conversion costs variances of the Assembly Department,assuming that conversion costs are 15% higher than expected?

Question

Emerging Dock Company manufactures boat docks 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.
Data for the Assembly Department for May 2017 are:

Costs for May:

Which of the following journal entries records the total conversion costs variances of the Assembly Department,assuming that conversion costs are 15% higher than expected?

Quizplus · Accepted Answer

The Answer of Emerging Dock Company manufactures boat docks 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.
Data for the Assembly Department for May 2017 are:

Costs for May:

Which of the following journal entries records the total conversion costs variances of the Assembly Department,assuming that conversion costs are 15% higher than expected?

Emerging Dock Company Manufactures Boat Docks on an Assembly Line