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PLEASE HELP ME WITH THESE JOURNAL ENTRIES! Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of
PLEASE HELP ME WITH THESE JOURNAL ENTRIES!
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 $21,168. It also incurred average direct labor costs of $15 per hour for the 4,209 hours worked in May by its production personnel. Manufacturing overhead for the month totaled $9,403, of which $2,200 was considered fixed. Slick's standard cost information for each case of synthetic motor oil is as follows. Direct materials standard price Standard quantity allowed per case Direct labor standard rate Standard hours allowed per case Fixed overhead budgeted Normal level of production Variable overhead application rate Fixed overhead application rate ($2,600 = 5,200 cases) Total overhead application rate $ 1.30 per gallon 3.25 gallons $ 16 per hour 0.75 direct labor hours $2,600 per month 5,200 cases per month $ 1.50 per case 0.50 per case $ 2.00 per case Required A Required B Required C Required 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 Process. 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less Show No Debit Credit Transaction 1 1 General Journal Work in process inventory Materials quantity variance Materials price variance Direct materials inventory 21,125 325 1,138 X 20,312 X 2 2 60,000 3,792 X Work in process inventory Labor efficiency variance Direct labor payable Labor rate variance 55,818 7,974 3 3 10,000 Work in process inventory Overhead volume variance Overhead spending variance Manufacturing overhead OOO 453 10,000 4 4 91,125 Finished goods inventory Work in process inventory 91,125 5 5 453 X Overhead spending variance Overhead volume variance Cost of goods sold 966Step by Step Solution
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