Emble une mybusinesscourse.com Business Course Variances, Entries, and Income Statement A summary of Blake Company's manufacturing variance report for June 2016 follows. (7,600 units) Actual Costs (7,600 units) Variances $66,880 $65,100 $1,780 F 77,520 82,800 5,280 U 34,200 33,000 1,200 F Support 102,600 $281,200 102,600 $283,500 $2,300 U Standard material cost per unit of product is 4 pounds at $2.20 per pound, and standard direct labor cost is 0.75 hours at $13.60 per hour. Total actual material cost represents 31,000 pounds purchased at $2.10 per pound. Total actual labor cost represents 6,000 hours at $13.80 per hour. According to standards, variable overhead rate is applied at $6 per direct labor hour (based on a normal capacity of 6,000 direct labor hours or 8,000 units of product). Assume that all fixed overhead is applied to work in progress inventory. mybusinesscourse.com Business Course a. Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: $ 65100 Split cost: $ 68200 Standard cost: $ 66880 Materials price $ 3100 F Materials efficiency $ 1760 U Support Labor Variances Actual cost: $ 82800 Split cost: $ 82800 Standard cost: $ 77520 Labor rate $ 1200 U Labor efficiency $ 4270 U Variable Overhead Variances Actual cost: $ 33000 Split cost: $ 36000 Standard cost: $ 34200 Variable overhead spending $ 3410 F Variable overhead efficiency $ 1990 F b. Prepare general journal entries to record standard costs, actual costs, and related variances for material, labor, and overhead. mybusinesscourse.com Business Course b. Prepare genera journal entries to record standard costs, actual costs, and related variances for material, labor, and overhead. Genera Description Materials inventory Materials price variance Accounts payable To record the purchases of direct materials Work in process inventory Materials efficiency variance Materials inventory To record the use of direct materials Work in process inventory Labor rate variance Labor efficiency variance Wages payable To record direct labor costs and related cost variances Work in process inventory Variable overhead efficiency variance Variable overhead spending variance Manufactruing overhead To apply variable overhead to work in progress and re Work in process inventory Manufacturing overhead To apply fixed overhead to work in progress Support C. Prepare journal entries to record the transfer of all completed units to Finished mybusinesscourse.com Business Course c. Prepare journal entries to record the transfer of all completed units to Finished Goods Inventory and the subsequent sale of 6,400 units on account at $60 each (assume no beginning finished goods inventory). General Journal Description Debit Credit Finished goods inventory Work in process invent To record completion ofunits Accounts receivable Sales To record sale ofunits Cost of goods sold Finished goods inventi To record cost ofunits Support . d. Prepare a partial income statement (through gross profit on sales) showing gross profit based on standard costs, the incorporation of variances, and gross profit based on actual costs. Do not use negative signs with any of your answers below. Blake Company Partial Income Statement For the Month Ended June 30, 2016 mybusinesscourse.com Business Course d. Prepare a partial income statement (through gross profit on sales) showing gross profit based on standard costs, the incorporation of variances, and gross profit based on actual costs. Do not use negative signs with any of your answers below. Blake Company Partial Income Statement For the Month Ended June 30, 2016 $ st of goods at standard cost oss profit at standard cost t cost variance Material $ Labor Variable overhead oss profit at actual cost Support es Save Answers Finish attempt... Emble une mybusinesscourse.com Business Course Variances, Entries, and Income Statement A summary of Blake Company's manufacturing variance report for June 2016 follows. (7,600 units) Actual Costs (7,600 units) Variances $66,880 $65,100 $1,780 F 77,520 82,800 5,280 U 34,200 33,000 1,200 F Support 102,600 $281,200 102,600 $283,500 $2,300 U Standard material cost per unit of product is 4 pounds at $2.20 per pound, and standard direct labor cost is 0.75 hours at $13.60 per hour. Total actual material cost represents 31,000 pounds purchased at $2.10 per pound. Total actual labor cost represents 6,000 hours at $13.80 per hour. According to standards, variable overhead rate is applied at $6 per direct labor hour (based on a normal capacity of 6,000 direct labor hours or 8,000 units of product). Assume that all fixed overhead is applied to work in progress inventory. mybusinesscourse.com Business Course a. Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: $ 65100 Split cost: $ 68200 Standard cost: $ 66880 Materials price $ 3100 F Materials efficiency $ 1760 U Support Labor Variances Actual cost: $ 82800 Split cost: $ 82800 Standard cost: $ 77520 Labor rate $ 1200 U Labor efficiency $ 4270 U Variable Overhead Variances Actual cost: $ 33000 Split cost: $ 36000 Standard cost: $ 34200 Variable overhead spending $ 3410 F Variable overhead efficiency $ 1990 F b. Prepare general journal entries to record standard costs, actual costs, and related variances for material, labor, and overhead. mybusinesscourse.com Business Course b. Prepare genera journal entries to record standard costs, actual costs, and related variances for material, labor, and overhead. Genera Description Materials inventory Materials price variance Accounts payable To record the purchases of direct materials Work in process inventory Materials efficiency variance Materials inventory To record the use of direct materials Work in process inventory Labor rate variance Labor efficiency variance Wages payable To record direct labor costs and related cost variances Work in process inventory Variable overhead efficiency variance Variable overhead spending variance Manufactruing overhead To apply variable overhead to work in progress and re Work in process inventory Manufacturing overhead To apply fixed overhead to work in progress Support C. Prepare journal entries to record the transfer of all completed units to Finished mybusinesscourse.com Business Course c. Prepare journal entries to record the transfer of all completed units to Finished Goods Inventory and the subsequent sale of 6,400 units on account at $60 each (assume no beginning finished goods inventory). General Journal Description Debit Credit Finished goods inventory Work in process invent To record completion ofunits Accounts receivable Sales To record sale ofunits Cost of goods sold Finished goods inventi To record cost ofunits Support . d. Prepare a partial income statement (through gross profit on sales) showing gross profit based on standard costs, the incorporation of variances, and gross profit based on actual costs. Do not use negative signs with any of your answers below. Blake Company Partial Income Statement For the Month Ended June 30, 2016 mybusinesscourse.com Business Course d. Prepare a partial income statement (through gross profit on sales) showing gross profit based on standard costs, the incorporation of variances, and gross profit based on actual costs. Do not use negative signs with any of your answers below. Blake Company Partial Income Statement For the Month Ended June 30, 2016 $ st of goods at standard cost oss profit at standard cost t cost variance Material $ Labor Variable overhead oss profit at actual cost Support es Save Answers Finish attempt