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bulgar [2K]
3 years ago
10

Carolina Hills Manufacturing has two processing departments, Department I and Department II. During the year, direct materials w

ere assigned to the two production departments: $280,000 to Department I and $300,000 to Department II. During the period, $8,000 of indirect materials were used in production. Provide the journal entry to record this transaction. Process costing is used.
Business
1 answer:
Taya2010 [7]3 years ago
7 0

Answer:

Journal Entry to record the transaction

Dr. Work in Process Department I          $280,000      

Dr. Work in Process Department II         $300,000      

Dr. Manufacturing Overhead                  $8,000

Cr. Material Inventory                               $588,000

Explanation:

The direct material is charged to the work in process account, because it is an direct expense and all the direct expenses are charged to the work in process account like indirect material, indirect labor etc.

The indirect material is charged to manufacturing overhead account because all the indirect expenses are charged to the manufacturing overhead account like indirect material, indirect labor etc.

These inventories are issued from the material inventory, so to deduct the issued value from the material inventory account, the total value of direct and indirect issuance is credited to record the effect.

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Samuelson will produce 20,000 units in January using level production. If each unit costs $500 to manufacture, what is the dolla
Likurg_2 [28]

Answer:

The dollar value of ending inventory is $7.500.000

Explanation:

To calculate the dollar value of ending inventory you need to use the next formula:

End inventory= (Beginning inventory + production - sales).$

In this case:

- Beginning inventory: 10.000 units

- January Production: 20.000 units

- Sales: 15.000 units

End inventory= 10000+20000-15000

End inventory= 15.000 units

Dollar value= 150000 . $500= $7.500.000

5 0
3 years ago
What type of activity is the purchase of equipment for cash?
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6 0
3 years ago
Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing ha
svet-max [94.6K]

Answer:

Material Price Variance= $ 2850 Unfavorable

Material Quantity Variance=$ 900 unfav

Total direct materials variance $ 3750

Direct Labor Rate  variance= $ 3325 fav

Direct labor time variance= 3200 Unfavorable

Total Direct Labor Cost Variance= 125 fav

Explanation:

Standard wage per hour $20

Standard labor time per faucet 30 min  = 0.5 *5000= 2500 Hrs

Standard number of lbs. of brass 2.5lbs

Standard price per lb. of brass $1.80

Actual price per lb. of brass $1.95

Actual lbs of brass used during the week 13,000 lbs

Number of faucets produced during the week 5,000

Actual wage per hr. $18.75

Actual hrs for the week (70 employees x 38 hours) 2,660

 

Material Price Variance= (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)

Material Price Variance= ($ 1.95 *13000)-($1.8 *5000*2.5)= ($ 1.95 *13000)-($1.8 *12500)= $ 25350 - $  22500= $ 2850

Material Price Variance= $ 2850 Unfavorable

Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)

Material Quantity Variance=($1.8 *13000)-($1.8 *12500)= 23400- 22500

Material Quantity Variance=$ 900 Unfav

Total direct materials variance =Material Price Variance + Material Quantity Variance= 2850 + 900 = $ 3750 Unfav

Direct Labor Rate  variance= (actual hours* actual rate)- (actual hours * standard rate)

Direct Labor Rate  variance=( 2660 *18.75)  - (2660*20)= 49875- 53200

Direct Labor Rate  variance= $ 3325 fav

Direct labor time variance= (actual hours* standard rate)- (standard hours * standard rate)

Direct labor time variance= (2660 *20) -(0.5 * 5000*20)

Direct labor time variance= 53200-50,000

Direct labor time variance= 3200 Unfavorable

Total Direct Labor Cost Variance= Direct Labor Rate  variance + Direct labor time variance= 3325 fav- 3200 unfav= 125 fav

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victus00 [196]

Answer:

$63,932.91

Explanation:

FV = $825,000

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Rate = 4.45%, assuming per annual

The amount company need to save each quarter is the payment amount.

We can easily calculate payment amount by formula in excel =PMT(4.45%/4,12,,825000,1) = 63,932.91

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