Question
Lopez Company uses a standard cost accounting system. Some of the ledger accounts have been destroyed in a fire. The controller asks your help in
Lopez Company uses a standard cost accounting system. Some of the ledger accounts have been destroyed in a fire. The controller asks your help in reconstructing some missing entries and balances.
Answer the following questions.
(a)
Materials Price Variance shows a $2,400unfavorable balance. Accounts Payable shows $129,900of raw materials purchases. What was the amount debited to Raw Materials Inventory for raw materials purchased?
Raw materials purchased | $ |
(b)
Materials Quantity Variance shows a $2,500favorable balance. Raw Materials Inventory shows a zero balance. What was the amount debited to Work in Process Inventory for direct materials used?
Direct materials used | $ |
(c)
Labor Price Variance shows a $1,400favorable balance. Factory Labor shows a debit of $141,000for wages incurred. What was the amount credited to Factory Wages Payable?
Wages Payable | $ |
(d)
Factory Labor shows a credit of $141,000for direct labor used. Labor Quantity Variance shows a $900favorable balance. What was the amount debited to Work in Process for direct labor used?
Direct labor used | $ |
(e)
Overhead applied to Work in Process totaled $167,000. If the total overhead variance was $1,400favorable, what was the amount of overhead costs debited to Manufacturing Overhead?
Manufacturing Overhead | $ |
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