Amada Companys standard cost system reports this information from its December operations. Required 1. Prepare December 31
Question:
Amada Company’s standard cost system reports this information from its December operations.
Required
1. Prepare December 31 journal entries to record the company’s costs and variances for the month for
(a) Direct materials,
(b) Direct labor, and
(c) Overhead. Ignore the journal entry to close the variances.
Analysis Component
2. If management investigates all variances above $5,000, which variances will management investigate?
Standard direct materials cost.... $100,000 Direct materials quantity variance 3,000 U Direct materials price variance 500 F Actual direct labor cost...... 90,000 Direct labor efficiency variance 7,000 F Direct labor rate variance .. 1,200 U Actual overhead cost .. 375,000 Volume variance 12,000 U Controllable variance 9,000 U ...
Step by Step Answer:
Part 1 a b c Part 2 Management will focus onthree variances that exceed ...View the full answer
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Business questions
-
Prepare general fund journal entries to record the following cash transfers that a city made from its general fund to other funds. Be sure your entry reflects the nature of the transfer. 1....
-
Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Pitts Co.: March 1: Issued $2,000,000 face value Pitts Co. seconds mortgage,...
-
Prepare the general journal entries to record the following transactions of the Quinones County General Fund: 1. Quinones County borrowed $1,000,000 by issuing six-month tax anticipation notes...
-
Jellio, Maker of Whimsical Furnishings, Considers Growth. Start by asking yourself, who is the customer for this product, not who is currently buying it. There is a difference. Then, where would they...
-
Consider the powerplant as described in Problem 6.102. a. Find the power removed in the condenser by the cooling water (not shown). b. Find the power to the condensate pump. c. Do the energy terms...
-
Computing cost of goods sold and gross margin Following are financial figures for five companies. Solve for the missing items a through e. Beginning inventory Purchases Purchase discounts Purchase...
-
If division managers cannot agree among themselves on a transfer price when using the negotiated price approach, how is the transfer price established?
-
The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military operation. Working the normal two shifts of 40 hours each per week,...
-
Doner Company Inc. established a foreign subsidiary on January 1, Year 1. The subsidiary's financial statements in foreign currency (FC) for the year ended December 31, Year 1, appear as follows:...
-
Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: Quarter Forecast 1...
-
A company reports the following for one of its products. Compute the total direct materials variance and identify it as favorable or unfavorable. Direct materials standard (4 Ibs. @ $2 per Ib.) $8...
-
Lewis Co. reports the following fixed budget and actual results for May. Prepare a flexible budget performance report showing variances between budgeted and actual results, and indicate whether each...
-
Complete the requirements of CP10-6, assuming Southwest Corporation uses simplified effective interest amortization shown in Chapter Supplement 10C. CP10-6 Required: 1. Compute the issue price of the...
-
Example of E-Businesses is coles, use following link for analysis: https://www.coles.com.au/ 1.Insert brief introduction about the business here... ... 2.Environmental Analysis - Current business...
-
Find (x+3)(x-2)dx Question Help: Video + C
-
You have been tasked with developing a health campaign focused on individuals living in the city of New Haven. What health issue are you focusing on and why? What will the goals and objectives of...
-
Identify where in the National Quality Standards, Regulations and National law, does it discuss health and safety, and what this means in an early childhood education and care service. I have found...
-
Visit one of the following websites, or locate other websites that help you create a chart or graph: Beam Chart Maker ( beam.venngage.com ), Canva ( canva.com/graphs/ ), Charts Builder (...
-
For the year ending December 31, 2012, Sanjay Company accumulates the following data for the plastics division, which it operates as an investment centre: contribution margin -$700,000 budgeted,...
-
Borrowing costs should be recognised as an expense and charged to the profit and loss account of the period in which they are incurred : A. If the borrowing costs relate to qualifying asset B. If the...
-
Prepare journal entries to record the following merchandising transactions of Yarvelle Company, which applies the perpetual inventory system. May 2 Purchased merchandise from Havel Co. for $ 10,000...
-
Prepare journal entries to record the following merchandising transactions of Mason Company, which applies the perpetual inventory system. July 3 Purchased merchandise from OLB Corp. for $ 15,000...
-
The following unadjusted trial balance is prepared at fiscal year-end for Foster Products Company. Rent expense and salaries expense are equally divided between selling activities and the general and...
-
Cash Market Capitalization Shares Outstanding Debt Stock Price $25, $30.68 $20, $30.68 $25, $30 $30, $30 Panama Red $25,000M $150,000M 5,000M $0 $30
-
Cullumber Repair Inc. was started on May 1. A summary of May transactions is presented as follows. 1. Stockholders invested $24,500 cash in the business in exchange for common stock. 2. Purchased...
-
In the context of Texas budget policy, what factor differentiates restricted funds from unrestricted funds? if the funds can be used for salaries if the money can be reinvested in the stock market if...
Study smarter with the SolutionInn App