Refer to Exercise 24-8. BTS Company records standard costs in its accounts and its material variances in
Question:
(1) Show the journal entry that both charges the direct materials costs to the Goods in Process Inventory account and records the materials variances in their proper accounts.
(2) Assume that BTS’s material variances are the only variances accumulated in the accounting period and that they are immaterial. Prepare the adjusting journal entry to close the variance accounts at period-end.
(3) Identify the variance that should be investigated according to the management by exception concept. Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
1 Goods in Process Inventory 672000 Direct Materials Price Variance 8800 ...View the full answer
Answered By
Hassan Imtiaz
The following are details of my Professional Experience. Responsibilities Eight years of demanding teaching experience in the field of finance and business studies at Master’s Level. Completion of the given tasks within given time with quality and efficiency. Marketing professional with practical experience in and solid understanding of a diverse range of management applications, including market analysis, sales and marketing, team building and quality assurance. I have excellent skills to approach deal and sustain corporate clients / customers by demonstrating not only extraordinary communication and interpersonal skills but also high caliber presentation, negotiation and closing skills. Manage and follow up the day-to-day activities. Manage and co-ordinate the inventories. Fulfillment of all the tasks assigned.
The following are details of my Areas of Effectiveness. Finance 1. Corporate Finance 2. Advanced Corporate Finance 3. Management of Financial Institutions 4. International Financial Management 5. Investments 6. Fixed Income 7. Real Estate Investment 8. Entrepreneurial Finance 9. Derivatives 10. Alternative Investments 11. Portfolio Management 12. Financial Statement Analysis And Reporting (US GAAP & IFRS) 13. International Financial Markets 14. Public Finance 15. Personal finance 16. Real estate 17. Financial Planning Quantitative Analysis 1. Time Value Of Money 2. Statistics 3. Probability Distribution 4. Business Statistics 5. Statistical Theory and Methods Economics 1. Principles of Economics 2. Economic Theory 3. Microeconomic Principles 4. Macroeconomic Principles 5. International Monetary Economics 6. Money and Banking 7. Financial Economics 8. Population Economics 9. Behavioral Economics International Business 1. Ethics 2. Business Ethics 3. An introduction to business studies 4. Organization & Management 5. Legal Environment of Business 6. Information Systems in Organizations 7. Operations Management 8. Global Business Policies 9. Industrial Organization 10. Business Strategy 11. Information Management and Technology 12. Company Structure and Organizational Management Accounting & Auditing 1. Financial Accounting 2. Managerial Accounting 3. Accounting for strategy implementation 4. Financial accounting 5. Introduction to bookkeeping and accounting Marketing 1. Marketing Management 2. Professional Development Strategies 3. Business Communications 4. Business planning 5. Commerce & Technology Human resource management 1. General Management 2. Conflict management 3. Leadership 4. Organizational Leadership 5. Supply Chain Management 6. Law 7. Corporate Strategy Creative Writing 1. Analytical Reading & Writing Other Expertise 1. Risk Management 2. Entrepreneurship 3. Management science 4. Organizational behavior 5. Project management 6. Financial Analysis, Research & Companies Valuation 7. And any kind of Excel Queries
4.80+
150+ Reviews
230+ Question Solved
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Question Posted:
Students also viewed these Managerial Accounting questions
-
Refer to Exercise 8-8. Listor Company records standard costs in its accounts and its material variances in separate accounts when it assigns materials costs to the Goods in Process Inventory account....
-
Refer to Exercise 23-8. Hart Company records standard costs in its accounts and its material variances in separate accounts when it assigns materials costs to the Goods in Process Inventory account....
-
Goods in process inventory account of a manufacturing company that uses an overhead rate based on the direct labor cost has a 4,400 debit balance after all posting is completed, the cost sheet of the...
-
You are the manager of an educational facility and have beenasked to predict analyze the electric cost for 2020 based on the following 12 months of Information, You know the electric cost has both...
-
The number of bac1eria in a yeast culture grows at a rate proportional to the number present. If the population of a colony of yeast bacteria doubles in one hour, and if 5 million are present...
-
Tennis Apparel has two classes of stock authorized: 4 % , $ 1 0 par preferred, and $ 1 par value common. The following transactions affect stockholders equity during 2 0 2 4 , its first year of...
-
Why might deep green environmentalists favour the presentation of corporate information in ecological accounts but reject disclosures in environmentally adjusted financial accounts?
-
The following events occur for Morris Engineering during 2015 and 2016, its first two years of operations. February 2, 2015 Provide services to customers on account for $ 38,000. July 23, 2015...
-
Evaluate the new product development process and develop appropriate suggestions to improve the process in terms of speed to market. (ii) Discuss the importance of sustainability, corporate social...
-
As the PowerPoint lecture indicated, healthcare is a business in which money is brought in via payment for services and money is spent toward providing those services. Every effort is made to...
-
BTS Company made 6,000 bookshelves using 88,000 board feet of wood costing $607,200. The companys direct materials standards for one bookshelf are 16 board feet of wood at $7 per board foot. (1)...
-
Earth Company expects to operate at 80% of its productive capacity of 25,000 units per month. At this planned level, the company expects to use 40,000 standard hours of direct labor. Overhead is...
-
As in Exercise 19, we hope to estimate the percentage of adults aged 25 to 30 who never graduated from high school. What sample size would allow us to increase our confidence level to 95% while...
-
What rate of interest compounded annually is involved if a. an investment of \($10\),000 made now will result in a receipt of \($23\),674 ten years from now? b. an investment of \($2\),000 made 18...
-
AutoFoundry has contacted Centrifugal Casting Company about the purchase of machines for the production of (1) Babbitt bearings, and (2) diesel cylinder liners (engine sleeves). The cost of the...
-
You have settled on a house for \($180\),000 and need a loan for \($171\),000. You have been offered a \($171\),000 loan for 6.25 percent, plus 2.375 points (applied to only the \($171\),000), plus...
-
What is the present value of the following future receipts? a. $19,000 five years from now at 9 percent compounded annually b. $8,300 twelve years from now at 15 percent compounded annually c. $6,200...
-
A subsidiary of a major furniture company manufactures wooden pallets. The plant has the capacity to produce 300,000 pallets per year. Presently, the plant is operating at 70 percent of capacity. The...
-
Which of these accounts is an asset? A. Common Stock B. Supplies C. Accounts Payable D. Fees Earned
-
During the month, services performed for customers on account amounted to $7,500 and collections from customers in payment of their accounts totaled $6,000. At the end of the month, the Accounts...
-
Match the bond terminology in the left column to the correct definition from the right column. Bond Terminology 1. Contract rate of interest 2. Discount 3. Face amount 4. Market rate of interest 5....
-
Refer to Exercise 4-10 and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system and the gross method are used by both the buyer and the...
-
Indicate whether the failure to include in-transit inventory as part of the physical count results in an overstatement, understatement, or no effect on the following ratios. a. Gross margin ratio b....
-
Prepare journal entries for the following merchandising transactions of Powell Company assuming it uses a perpetual inventory system and the gross method. May 1 12 31 Powell purchased merchandise...
-
Time Value of Money calculations are a great way to figure out how much payments will be on loans or how much we need to save over time to achieve our financial goals. The calculation always uses the...
-
Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy:...
-
Employer sponsored health care coverage create situation in which health insurers face high moral hazard. a. Graphically describe how health insurance creates this moral hazard. In your answer,...
Study smarter with the SolutionInn App