Please assist with Req2, double check the numbers in Req4, and assist with Req6. Thank you!
G H 10 15 B D E F 1 Flexible Budgets & Standard Cost Systems 2 One of the owners of Nerdzy Computer Company had a midlife crisis and decided to leave the 3 business and start manufacturing soap instead of computers (sound far-fetched...well this is what 4 my stepmom really did). The soap company is called Sudsy Days and it manufactures white labeled 5 soap that it sells to other companies for customizing with their own logos. Sudsy Days prepares 6 flexible budgets and uses a standard cost system to control manufacturing costs. 7 8 9 The standard unit cost of a jar of soap is based on static budget volume of 59800 soap jugs per month Direct Materials (0.2 lbs. @ $0.25 per Ib.) $0.05 11 Direct Labor (3 minutes @ $0.11 per minute) 0.33 12 Manufacturing Overhead: 13 Variable (3 minutes @ $0.06 per minute) 0.18 14 Fixed (3 minutes @ $0.13 per minute) 0.39 0.57 Total Cost per Soap Jug $0.95 17 18 Actual cost and production information for July 2021 follows: 19 a. There were no beginning or ending inventory balances. All expenditures were on account. 20 b. Actual production and sales were 62500 soap jugs 21 c. Actual direct materials usage was 11000 lbs. at an actual cost of $0.17 per lb. 22 d. Actual direct labor usage was 197000 minutes at a total cost of $25610 23 e. Actual overhead cost was $10835 variable and $29765 fixed. 24 f. Selling and administrative costs were $95000. 25 26 REQUIREMENTS 27 1 Compute the cost and efficiency variances for direct materials and direct labor. 28 2 Journalize the purchase and usage of direct materials and the assignment of direct labor, 29 including the related variances, 30 3 For manufacturing overhead, compute the variable overhead cost and efficiency variances and 31 the fixed overhead cost and volume variances. 32 4 Journalize the actual manufacturing overhead and the allocated manufacturing overhead. 33 Journalize the movement of all production costs from Work-in-Process Inventory. Journalize 34 the adjusting of the Manufacturing Overhead account. 35 5 Sudsy Days intentionally hired more highly skilled workers during July. How did this decision 36 affect the cost variances? Overall, was the decision wise? 37 6 Prepare the standard cost income statement for July. The standard and actual sales price per 38 jug of soap is $3. 39 Req2 Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. DR CR 3,125 Account & Explanation Work In Process Inventory Direct Materials Cost Variance Accounts Payable Purchased Direct Materials 1,255 1,870 Used Direct Materials Direct Labor Costs incurred Req4 Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. DR CR Account & Explanation Work In Process Inventory Various Accounts Manufacturing overhead costs incurred. 1,870 1,870 25,610 Work In Process Inventory Manufacturing Overhead Manufacturing overhead costs allocated. 40,600 34,572 Work In Process Inventory Finished Goods Inventory Completed Goods transferred. 62,052 5,600 95,000 Manufacturing Overhead Wages Expense Finished Goods Inventory Sales Revenue Accounts Payable To adjust manufacturing overhead. 62,052 187,500 24,848 Req6 Prepare the standard cost income statement for July. The standard and actual sales price per jug of soap is $3. Sudsy Days Standard Cost Income Statement For the month ended July 31, 2021 Cost of Goods Sold at actual cost
