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chapter 23

> P23-28A (similar to) moremo Stenback manufactures coffee mugs that it sells to other companies for customizing with their own lod Tlexible budgets and uses a standard cost system to control manufacturing costs. The standard unit based on static budget volume of 60,100 coffee mugs per month : (Click the icon to view the cost data.) Date Credit Debit 2,500 Jul. Accounts and Explanation Raw Materials Inventory Direct Materials Cost Variance Accounts Payable a. There were no beginning or ending inventory balances. All expenditures were on account b. Actual production and sales were 62,800 coffee mugs C. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per lb. d. Actual direct labor usage was 201,000 minutes at a total cost of $32,160. e. Actual overhead cost was $8,040 variable and $32.860 fixed. f. Selling and administrative costs were $110,000 800 1,700 Purchased direct materials. Data Table - X Now, journalize the usage of direct materials, including the related variance. (Prepare a single compol Date Accounts and Explanation Debit Credit Jul. Work-in-Process Inventory Direct Materials Efficiency Variance Raw Materials Inventory 0.05 0.42 Direct Materials ( 0.2 lbs @ $ 0.25 per lb) Direct Labor ( 3 minutes @ $ 0.14 per minute) Manufacturing Overhead: Variable ( 3 minutes @ $ 0.06 per minute) Fixed (3 minutes @ $ 0.13 per minute) Total Cost per Coffee Mug $ 0.18 0.39 Used direct materials 0.57 1.04 $ Choose from any list or enter any number in the input fields and then click Check