Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Boron records pnce variances for materials at the time of purchase, Required: Prepare journal entries for the following events and transactions. 1. Purchase, on credit,

image text in transcribed
image text in transcribed
Boron records pnce variances for materials at the time of purchase, Required: Prepare journal entries for the following events and transactions. 1. Purchase, on credit, of direct matenals. 2. Direct matenals issued to production. 3. Direct labor cost of units completed this penod. 4. Direct manufacturing cost (direct labor plus direct materials) of units completed and transferred to Finished Goods inventory 5 Sale (on credit), for $290 per gallon, of 2,000 gallons of output. (Hint: You will need two journal entries here) (For all requirements, If no entry is required for a transaction/event, select "No journal entry required" in the first account fieid. Round your answers to the nearest whole dollar amount.) Boron Chemical Company produces a synthetic resin that is used in the automotive industry. The company uses a standard cost system. For each gallon of output, the following direct manufacturing costs are anticipated: Direct labor: 3.40 hours at $29.60 per hour Direct materials: 3.40 gallons at \$24.60 per gallon 598,60581.60 During December of the current year, Boron produced a total of 2,640 gallons of output and incurred the following direct manufacturing costs: Direct labor: 8,850 hours worked at an average wage rate of 320.90 per hour Direct materials: Purchased: 9,6ee gallons e$524.45 per gallon used in production: 9,100 Ballons Boron records price varlances for materials at the time of purchase. Required: Prepare journal entries for the following events and transactions: 1. Purchase, on credit, of direct matenals. 2. Direct materials issued to production. 3. Direct labor cost of units completed this penod. 4. Direct manufacturing cost (direct labor plus direct matertals) of units completed and transferred to Finished Goods inventory. 5. Sale (on credit), for $290 per gallon, of 2.000 gallons of output. (Hint You will need two journal entries here) (For all requirements, If no entry is required for a transection/event, select "No journal entry required" In the first account fleid. Round your answers to the nearest whole dollar amount.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Decision Making And Control

Authors: Jerold Zimmerman

10th Edition

1259969495, 978-1259969492

More Books

Students also viewed these Accounting questions