Journal entries; variance analysis; other analyses; review of chapter Cost and production data for the Jumbo Products Company follow.

{Required:}
1. Make general journal entries to record all transactions and variances. Use the two-variance method for overhead variance analysis. (Hint: You must first compute equivalent units and the variances for materials, labor, and factory overhead.)
2. Prove the ending balances of Work in Process in both departments.
3. Prove that all costs have been accounted for. (Hint: Remember to include the variances in the "Costs accounted for" section.)

Transcribed Image Text:

Materials: 1: 2 lbs. $2/fb. Il: 2 lbs. $1/lb.- Labor: 2 hrs. $5/hr. Standard Cost Sheet (Normal capacity: 1,000 units) 1 hr. @ $6/hr. Factory overhead (per standard labor hour): Fixed Variable..... $2 $1. 13 Total Mixing Blending Total $ 4 10 6 $2 $ 6 6 16 10 $20 $12 $32 Production Report Mixing Blending Beginning units in process None None Units finished and transferred.. 1,000 900 Ending units in process 200 100 Stage of completion 1/2 1/2