Concord, Inc. is known throughout the world for its H20-X high-capacity water pump, used in irrigation systems. The company uses a standard costing system, and the pump's standard cost is as follows. The company's predetermined fixed overhead rate is based on an expected capacity of 103,600 direct labor hours per month Standard Cost Direct materials Direct labor Variable overhead Fixed overhead Standard Price $7 per pound $9 per DLH $9 per DLH $6 per DLH Standard Quantity 16 pounds 4 DLH 4 DLH 4 DLH $112 36 36 24 $208 During the month of September, the company produced 22,800 of the 25,900 pumps that had been scheduled for production in the budget. The company used 421,400 pounds of material during September. The direct labor payroll for the month was $977,800 for 97,780 direct labor hours. Variable overhead costs were $868,820; fixed overhead costs were $665.900. The company's purchasing agent signed a new supply contract that resulted in purchases of 486,000 pounds of direct materials at a price of $3,256,200. (a) Prepare the journal entries to record the purchase and use of direct materials during September. (Credit account titles are automatically indented when amount is entered. Do not indent manually) During the month of September, the company produced 22,800 of the 25,900 pumps that had been scheduled for production in the budget. The company used 421.400 pounds of material during September. The direct labor payroll for the month was $977,800 for 97,780 direct labor hours. Variable overhead costs were $868,820; fixed overhead costs were $665.900. The company's purchasing agent signed a new supply contract that resulted in purchases of 486,000 pounds of direct materials at a price of $3,256,200 (a) Prepare the journal entries to record the purchase and use of direct materials during September. (Credit account titles are automatically indented when amount is entered. Do not indent manually) No. Account Titles and Explanation Debit Credit 1. (To record the purchase of material) 2 (To record the use of material) (b) Prepare the journal entry to record the use of direct labor during September. (Credit account titles are automatically indented when amount is entered. Do not Indent manually) Account Titles and Explanation Debit Credit I To record direct labor) (c) Prepare the journal entry to record actual variable overhead costs incurred. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit (To record actual variable manufacturing overhead) (d) Prepare the journal entry to record the application of variable overhead to production. (Credit account titles are automatically Indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record applied variable manufacturing overhead) I (e) Prepare the journal entry to record actual fixed overhead costs incurred. (Credit account titles are automatically indented when amount is entered. Do not Indent manually.) Account Titles and Explanation Debit Credit (To record actual fixed manufacturing overhead) fixed overhead to production. (Credit account titles are automatically indented (f) Prepare the journal entry to record the application when amount is entered. Do not indent manually.) (f) Prepare the journal entry to record the application of fixed overhead to production. (Credit account titles are automatically indente when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record applied fixed manufacturing overhead) Torecuru appre txea manuacturing OverTeU (g) Prepare the journal entries to record the variable and fixed overhead variances. (Credit account titles are automatically Indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit 1. Credit I (To record variable overhead variances) 2. (To record fixed overhead variances) h) Prepare the journal entry to close all variances to Cost of Goods Sold. (Credit account titles are automatically indented when amount s entered. Do not indent manually.) Account Titles and Explanation Debit Credit dtv ,4
