Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

i need help with the x's. Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant

i need help with the x's.

image text in transcribedimage text in transcribed
Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant Each case contains 12 quarts of synthetic oil. To achieve this level of production. Slick purchased and used \"16,500 gallons of direct materials at a cost of $20,087. It also incurred average direct labor costs of $14 per hour for the 4,144 hours worked in May by its production personnel. Manufacturing overhead for the month totaled $9379, of which $2,200 was considered fixed. Slick's standard cost information for each case of synthetic motor oil is as follows. Direot materials standard price $ 1.30 per gallon Standard quantity allowed per case 3.25 gallons Direot labor standard rate $ 16 per hour Standard hours allowed per case IIIJS direot labor hours Fixed overhead budgeted $2.5\"! per month Normal level of production 5,200 oases per month Variable overhead application rate $ 1.50 per oase Fixed overhead application rate ($2,6UD + 5.2\"! cases] [1.50 per case Total overhead application rate $ 2.00 per case | Required: a. Compute the materials price and quantity variances. [1. Compute the labor rate and efficiency variances. c. Compute the manufacturing overhead spending and volume variances. d. Prepare the journal entries to: '1. Charge materials [at standard} to Work in Process. 2. Charge direct labor [at standard} to Work in Process. 3. Charge manufacturing overhead [at standard) to Work in Pro cess. 4. Transfer the cost of the 5,000 cases of synthetic motor oil produced in May to Finished Goods. 5. Close any over or underapplied overhead to cost of goods sold. No Transaction General Journal Debit Credit 1 1 Work in process inventory 21,125 Materials quantity variance V 325 Materials price variance V 1,363 Direct materials inventory 20,087 2 2 Work in process inventory 60,000 Labor efficiency variance 6,304 Labor rate variance V 8,288 Direct labor payable 58,016 3 3 Work in process inventory 10,000 V Overhead volume variance 100 Overhead spending variance 682 X Manufacturing overhead V 9,418 X 4 4 Finished goods inventory 91,125 Work in process inventory 91, 125 5 5 Overhead spending variance 682 X Overhead volume variance 100 Cost of goods sold 582 X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Physics

Authors: Alan Giambattista, Betty Richardson, Robert Richardson

2nd edition

978-0077339685

Students also viewed these Accounting questions