Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help with creating the T account The company where David works produces skateboards locally but selis them globally for $60 each. David is one of
help with creating the T account The company where David works produces skateboards locally but selis them globally for $60 each. David is one of the production managers in a meeting to discuss preliminary results from the year just ended. Here is the information they had in front of them: Actual results: - Quantity of wood purchased, 220,500 feet; quantity of wood used, 214,500 fect. - Quantity of wheels purchased, 408,340 wheels, quantity of wheels used, 392,340 wheels. - Actual cost of the wood, $4,30 per foot. - Actual cost of the wheels, 50,50 per wheel. - Quantity of DL hours used, 24,180 hours; actual cost of DL hours, $16.60 per hour. - Actual units produced, 78,000 skateboards. Complete a variance analysis for DM (both wood and wheels) and DL, determining the price and efficiency variances for each, be sure to specify the amount and sign of each variance Create a T-account for each DM Inventory account and for WIP Inventory, assuming all started with zero balances. Given your variance analysis in part (a), record any new debits and/or credits to these two T-accounts to reflect the DM and DL activity. Complete a variance analysis for DM (both wood and wheels) and DL, determining the price and efficiency variances for each; be sure to specify the amount and sign of each variance. Then, oylain the ending balances for each DM inventory account - what does each consist of in terms of DM guantity and price? (Round cost per unit to 2 decimal places, es. 15.25) The ending balance in DM inventory - Wood consists of fect at cost of 5 Aloot: The ending balarce in DM liwentory - Wheels consists of Wheels at cost of 5 Whieel
help with creating the T account
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started