Milanese Corporation Balance Sheet January 1 Assets Cash raw materials inventory Finished goods inventory Property, plant, and equipment (net) Total assets $1,091,390 25,840 79,810 652,460 $1,849,500 Liabilities and Equity Retained earnings Total liabilities and equity $1,849,500 $1,849,500 The standard cost card for the company's only product is as follows: Inputs Direct materials Direct labor Pixed manufacturing overhead Total standard cost per Standard Quantity or Hours 1.30 gallons 0.70 hours 0.70 hours Standard Standard Price or Rate Cost $ 5.00 per gallons $28.00 per hour 19.60 $16.40 per hour The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $229,600 and budgeted activity of 14,000 hours. During the year, the company completed the following transactions: a. Purchased 26,400 gallons of raw material at a price of $5.90 per gallon. b. Used 23,240 gallons of the raw material to produce 17,800 units of work in process. C. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 12,860 hours at an average cost of $28.40 per hour. d. Applied fixed overhead to the 17,800 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $240,200 of this total $123,420 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $116,780 related to depreciation of manufacturing equipment e. Transferred 17,800 units from work in process to finished goods f. Sold for cash 17,700 units to customers at a price of $50.30 per unit 9. Completed and transferred the standard cost associated with the 17.700 units sold from finished goods to cost of goods sold. h. Pald $53,690 of selling and administrative expenses. 1. Closed all standard cost variances to cost of goods sold. Help Suves on (cumulative) L. S UL QUOCUS WIR HULSTUELL I WIRD WU Wee por LGS WEREU 14.00 IU cost of $28.40 per hour. naye d. Applied fixed overhead to the 17,800 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $240,200. Of this total, $123.420 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $116,780 related to depreciation of manufacturing equipment e. Transferred 17,800 units from work in process to finished goods. 1. Sold for cash 17,700 units to customers at a price of $50.30 per unit. g. Completed and transferred the standard cost associated with the 17,700 units sold from finished goods to cost of goods sold. h. Paid $53,690 of selling and administrative expenses. L. Closed all standard cost variances to cost of goods sold. Required: 1. Compute all direct materials, direct labor, and fixed overhead variances for the year. 2. Enter the beginning balances and record the above transactions in the worksheet that appears below. Because of the width of the worksheet, it is in two parts. In your text, these two parts would be joined side-by-side to make one very wide worksheet and Determine the ending balance le... 12/31 balance) in each account. (Input all your answers as a positive value.) Work in Materials Price Finished Raw Materials Cash PP&E (net) - Quantity Variance $ Laboralemency Varance Variance $ 0 $ FOH Budpet Varance $ 0 FOH Volume Var $ 0 Retained i ngs $ 1,649,500 0 0 0 $ $ $ $ 1,091,390 25.840 652460 79.810 $ 0 $ 500 5.1441 9.600 TH 41 of 50 !!!