1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jarptica [38.1K]
3 years ago
15

Making journal entries Assume that during the month of April the production report of Austin Adhesives, Inc., in E8-10 revealed

the following information:_______. Units produced during the month . . . .......................... 21,000 Direct labor hours for the month . . . . . . . . . . . . . . . . . .41,000 Materials purchased (in pounds) . . . . . ..................... 130,000 Materials used (in pounds) ........................................ 125,000 Labor rate per hour ..................................................... $10.04 Materials cost per pound . . . . . . . . . ........................... $ 1.98 Make journal entries to charge materials (use the materials purchase price variance) and labor to Work in Process. (Remember to retrieve the standard costs)
Business
1 answer:
Alex_Xolod [135]3 years ago
6 0

Missing Information:

The normal capacity of  is 40,000 direct labor hours and 20,000 units per month. A finished unit requires 6 lb of materials at an estimated cost of $2 per pound. The estimated cost of labor is $10.00 per hour.

Answer:

Raw materials Inventory   260,000 debit  

D:M price variance                2,600 debit

     Account Payable                   257,400 credit

--to record the purchase ---

WIP-Inventory          248,000 debit

DM quality variance    2,000 debit

       Raw materials Inventory   250,000 debit

--to record requisition of materials--

WIP-Inventory    420,000 debit

D:L rate variance    1,640 debit

    Wages Payables             411,640 credit

    DL efficiency variance     10,000 credit

--to record the charge of labor into WIP--

Explanation:

130,000 pounds x $1.98 (actual)      = $257,400‬

130,000 pounds x $2.00 (standard) = $260,000

variance 2,600 favorable

Quantity Variance:

actual: 125,000 x $2 = 250,000

standard:  21,000 x 6 = 124,000 pounds x $2 = 248,000

variance: 2,000 unfavorable  

41,000 hours x $10.04 each = $411,640

41,000 hours x $10.00 each = $410,000

rate variance 1,640 unfavorable

efficiency variance:

21,000 x 2 hours = 42,000 hours x $10 = 420,000

actual 41,000 x $10 = 410,000

favorable 10,000

You might be interested in
On September 3, 2018, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows:
emmasim [6.3K]

Answer:

In Robers Company:

Debit Accumulated depreciation $75,000

Debit Equipment $72,500

Debit Cash $10,000

Credit Equipment $145,000

Credit Gain on exchange asset $12,500

In Phifer Corporation

Debit Accumulated depreciation $83,000

Debit Equipment $82,500

Debit Loss on exchange asset $9,500

Credit Cash $10,000

Credit Equipment $165,000

Explanation:

In Robers Company:

Book value of the equipment =  $145,000 - $75,000 = $70,000

Fair value of the equipment: $82,500 > Book value

The company will record gain on exchange:

Debit Accumulated depreciation $75,000

Debit Equipment $72,500

Debit Cash $10,000

Credit Equipment $145,000

Credit Gain on exchange asset $12,500

In Phifer Corporation

Book value of the equipment =  $165,000 - $83,000 = $82,000

Fair value of the equipment: 72,500 < Book value of the equipment

The company will record loss on exchange:

Debit Accumulated depreciation $83,000

Debit Equipment $82,500

Debit Loss on exchange asset $9,500

Credit Cash $10,000

Credit Equipment $165,000

5 0
3 years ago
Milo Clothing experienced the following events during 2016, its first year of operation: 1. Acquired $12,000 cash from the issue
Serga [27]

Answer:

Explanation:

The four transactions  will be recorded in the general journal as follows:

1) Debit cash                 $12,000

             Credit common stock                       $12,000

(To record the sale of common stock)

2) Debit purchases                 $5,600

            Credit   cash                 $5,600

(To record purchase of inventory in cash)

3) Debit cash                 $5,712

           Credit sales                        $3,360

            Credit gross profit              $2,352

(To record the sale of inventory in cash)

4) Debit advertising expenses                   $650

          Credit cash                     $650

(To record the payment of advertising expenses in cash)

5 0
3 years ago
Which results are more likely for someone without personal finance skills? Select three options.
KiRa [710]

Answer:

larger long-term credit or loan costs

less preparation for emergencies

increased long-term challenges

Explanation:

Personal finance involves planning and managing individual or family financial activities such as income generation, saving, spending, insurance, and investments. The process of managing personal finance is through budgeting and the development of a  financial plan.

Personal finance can be done by oneself or with the help of a personal financial manager. The objective is to help one meet both their short term and long term financial goals. Personal finance planning assists one meet expected future expenditures such as retirement while preparing them for unforeseen emergencies.

4 0
3 years ago
Read 2 more answers
Wiggle Pools has total equity of $358,200 and net income of $47,500. The debt-equity ratio is .68 and the total asset turnover i
Westkost [7]

Answer:

It is 6.58%

Explanation:

Debt-Equity Ratio = Debt/Equity

0.68= Debt/358,200

Debt = 0.68 x 358,200

Debt = $243,576

Total Asset Turnover = Revenue/ Total Asset

Total Assets = Debt + Equity = $243,576+ $358,200=$601,776

1.2= Revenue/601,776

Revenue= 1.2 x 601,776

              =$722,131.20

Profit Margin = Net income/ Revenue x 100%

                       = $47,500/$722,131.20 x100%

                       = 6.58%

6 0
3 years ago
A donor provides a large cash contribution that is to be used for acquisition of a new building. Under FASB standards, how would
jarptica [38.1K]

Answer:

B. Investing activity.

Explanation:

Investing activity refers to payment for acquisition of assets like a new building. It is an investing activity because the asset is expected to generate returns in terms of savings in rent.

3 0
3 years ago
Other questions:
  • An anesthesiology group is under contract to staff a hospital’s anesthesiology service. It believes it can provide coverage by h
    13·1 answer
  • What is quantity control?
    6·1 answer
  • How can starbucks ensure that it continues to meet customers expectations and needs?
    15·1 answer
  • Which of the following statements is CORRECT? a. Other things held constant, an increase in the debt ratio will result in an inc
    5·1 answer
  • The advertising campaign for crest toothpaste lets consumers know about its newest flavor, and also mentions its history as an e
    10·1 answer
  • Accountants rely heavily on using Excel to perform a wide range of activities to record transactions and report their results. I
    5·1 answer
  • Flint Systems is considering investing in​ production-management software that costs​ $630,000, has​ $67,000 residual​ value, an
    7·1 answer
  • On December 21, 2017, Novak Company provided you with the following information regarding its equity investments.
    12·1 answer
  • Which economic term is considered a resource?
    7·1 answer
  • What is the function of the audio tools on the Format contextual tab?
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!