Answered step by step
Verified Expert Solution
Link Copied!

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 image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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

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_2

Step: 3

blur-text-image_3

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

Introduction To Cost Accounting

Authors: Don R. Hansen, Maryanne Mowen, Liming Guan, Mowen/Hansen

1st International Edition

0538749636, 978-0538749633

More Books

Students also viewed these Accounting questions

Question

What penalty (if any) should Foster receive?

Answered: 1 week ago

Question

=+1. What is the schedule for this project?

Answered: 1 week ago