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Please make sure what I have so far is correct and provide the answers for section F exactly as it asks - thanks! The Cat's
Please make sure what I have so far is correct and provide the answers for section F exactly as it asks - thanks!
The Cat's meow manufactures gourmet cat food. During the month, it manufactured 5,000 cans of tuna, using 0.10 hours of direct labor per can at a rate of $8.00 per hour. The materials and labor standards for manufacturing the cans of tuna are as follows: Direct materials (1 pound of tuna @ $0.50 per pound) $0.50 Direct materials (1 can @ $0.35) 0.35 Direct labor (0.20 hour @ $7.00) The company actually used 4,900 pounds of tuna at a price of $0.65 per pound. It also purchased 5,000 cans at a price of $0.45 per can. 1.40 Required: A. Determine the total materials price variance and whether it is favorable or unfavorable. 1,235 Unfavorable B. Determine the materials usage variance for tuna and whether it is favorable or unfavorable. 50 Favorable c. Determine the labor rate variance and whether it is favorable or unfavorable. 500 Unfavorable $ D. Determine the labor efficiency variance and whether it is favorable or unfavorable. 3,500 Unfavorable E. Make all necessary journal entries to record (1) the purchase of materials, 2) the issuance and usage of materials, and (3) the direct labor variances. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". (1) Materials 4,200 Materials Price Variance 1,235 Accounts Payable 5,435 4,250 (2) Work in Process Materials Usage Variance Materials 50 4,200 (3) Work in Process Labor Rate Variance Labor Efficiency Variance 7,000 500 3,500 Accrued Payroll 4,000 Accrued Payroll 4,000 F. Provide the closing entries. Close unfavorable variances first and favorable variances second. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "O". F. Provide the closing entries. Close unfavorable variance if an amount box does not require an entry, leave it bla Cost of Goods Sold Labor Rate Variance Materials Price Variance 110 111 11 F. Provide the closing entries. Close unfavorable variances first and favorable var if an amount box does not require an entry, leave it blank or enter "O". Labor Efficiency Variance Materials Price Variance Materials Usage Variance
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