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help with the calculations please Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted
help with the calculations please
Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 97,300 lb., at a total cost of $510,825. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. The Schuyler Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor: E: (Click the icon to view the standards.) The number of finished units budgeted for January 2020 was 9,730; 9,600 units were actually produced. (Click the icon to view actual data.) Read the requirements - X Requirement 1. Compute the January 2020 price and efficiency variances of direct materials and direct manufacturing labor. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Standards Actual data Cost Actual input 97,300 95,500 Direct materials (purchases) Direct materials (usage) Direct manufacturing labor = $ Budgeted price $ 5.10 $ 5.10 496,230 487,050 $ 51.00 15.50 Direct materials: 10 lb. at $5.10 per lb. Direct manufacturing labor: 0.5 hour at $31 per hour Actual results in January 2020 were as follows: Direct materials: 95,500 lb. used Direct manufacturing labor: 4,700 hours $ 151,575 $ 4.700 $ 31.00 = $ 145,700 Print Done Next determine the formula and calculate the costs for the flexible budget. Budgeted input for actual output Direct materials 96,000 Direct manufacturing labor 4,800 Budgeted price 5.10 Print Done Flexible budget cost $ 489,600 = $ 148,800 31.00 Now compute the price and efficiency variances for direct materials and direct manufacturing labor. Label each variance as favorable (F) or unfavorable (U). Price Efficiency Direct materials variances $ 14,595 U$ $ 5,875 U $ variances 2,550 F 3,100 F Direct manufacturing labor Requirement 2. Prepare journal entries to record the variances in requirement 1. Prepare the journal entry for the direct materials price variance. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Credit Direct Materials Control Direct Materials Price Variance Accounts Payable or Cash Control Debit 496,230 14,595 510,825 Next prepare the journal entry for direct materials efficiency variance. Journal Entry Date Accounts Work-in-Process Control Direct Materials Efficiency Variance Credit Debit 489,600 2,550 487.050 Direct Materials Control Now prepare the journal entry for direct manufacturing labor price and efficiency variances. Date Credit Debit 148,800 Journal Entry Accounts Work-in-Process Control Direct Manufacturing Labor Price Variance Direct Manufacturing Labor Efficiency Variance Wages Payable Control 5,875 3.100 151,575Step by Step Solution
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