Alvino Corporation manufactures one product It does not maintain any beginning or ending Work in Process inventories The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold There is no variable manufacturing overhead The standard cost card for the companys only product is as follows Inputs Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 1 1 kilos $ 8 50 per kilo $ 9 35 Direct labor 0 70 hours $ 20 00 per hour 14 00 Fixed manufacturing overhead 0 70 hours $ 5 00 per hour 3 50 Total standard cost per unit $ 26 85 The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $70,000 and budgeted activity of 14,000 hours During the year, the company completed the following transactions Purchased 32,200 kilos of raw material at a price of $7 80 per kilo The materials price variance was $22,540 F Used 30,480 kilos of the raw material to produce 27,800 units of work in process The materials quantity variance was $850 F Assigned direct labor costs to work in process The direct labor workers (who were paid in cash) worked 18,260 hours at an average cost of $20 50 per hour The direct labor rate variance was $9,130 U The labor efficiency variance was $24,000 F Applied fixed overhead to the 27,800 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor hours allowed Actual fixed overhead costs for the year were $59,500 Of this total, $22,500 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $82,000 related to depreciation of manufacturing equipment The fixed manufacturing overhead budget variance was $10,500 F The fixed manufacturing overhead volume variance was $27,300 F Completed and transferred 27,800 units from work in process to finished goods Sold (for cash) 29,000 units to customers at a price of $31 90 per unit Transferred the standard cost associated with the 29,000 units sold from finished goods to cost of goods sold Paid $101,000 of selling and administrative expenses Closed all standard cost variances to cost of goods sold To answer the following questions, you will need to record transactions a through i in the worksheet below This worksheet is similar to the worksheets in your text except that it has been split into two parts to fit on the page PP E (net) stands for Property, Plant, and Equipment net of depreciation Cash Raw Materials Work in Process Finished Goods PP E (net) Materials Price Variance Materials Quantity Variance Labor Rate Variance Labor Efficiency Variance FOH Budget Variance FOH Volume Variance Retained Earnings 1 1 $1,090,000 $26,180 $0 $64,440 $677,800 $0 $0 $0 $0 $0 $0 $1,858,420 a b c d e f g h i 12 31 The ending balance in the Finished Goods account will be closest to Multiple Choice $32,220 $810,870 $96,660 $804,830

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Alvino Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in

Alvino Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead.

The standard cost card for the companys only product is as follows:

Inputs	Standard Quantity or Hours		Standard Price or Rate			Standard Cost
Direct materials	1.1	kilos	$	8.50	per kilo	$	9.35
Direct labor	0.70	hours	$	20.00	per hour		14.00
Fixed manufacturing overhead	0.70	hours	$	5.00	per hour		3.50
Total standard cost per unit						$	26.85

The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $70,000 and budgeted activity of 14,000 hours.

During the year, the company completed the following transactions:

Purchased 32,200 kilos of raw material at a price of $7.80 per kilo. The materials price variance was $22,540 F.
Used 30,480 kilos of the raw material to produce 27,800 units of work in process. The materials quantity variance was $850 F.
Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 18,260 hours at an average cost of $20.50 per hour. The direct labor rate variance was $9,130 U. The labor efficiency variance was $24,000 F.
Applied fixed overhead to the 27,800 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $59,500. Of this total, $22,500 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $82,000 related to depreciation of manufacturing equipment. The fixed manufacturing overhead budget variance was $10,500 F. The fixed manufacturing overhead volume variance was $27,300 F.
Completed and transferred 27,800 units from work in process to finished goods.
Sold (for cash) 29,000 units to customers at a price of $31.90 per unit.
Transferred the standard cost associated with the 29,000 units sold from finished goods to cost of goods sold.
Paid $101,000 of selling and administrative expenses.
Closed all standard cost variances to cost of goods sold.

To answer the following questions, you will need to record transactions a through i in the worksheet below. This worksheet is similar to the worksheets in your text except that it has been split into two parts to fit on the page. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

Cash

Raw Materials

Work in Process

Finished Goods

PP&E (net)

Materials Price Variance

Materials Quantity Variance

Labor Rate Variance

Labor Efficiency Variance

FOH Budget Variance

FOH Volume Variance

Retained Earnings