Problem 24-06A a-d

Swifty Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for1,000units of Product B was received. The standard cost of one unit of Product B is as follows.

Direct materials3pounds at $1.00per pound$3.00Direct labor1.50hour at $10.00per hour15.00Overhead2hours (variable $4.30per machine hour; fixed $3.30per machine hour)15.20Standard cost per unit$33.20

Normal capacity for the month was4,030machine hours. During January, the following transactions applicable to Job No. 12 occurred.

1.Purchased3,100pounds of raw materials on account at $1.06per pound.2.Requisitioned3,100pounds of raw materials for Job No. 12.3.Incurred1,580hours of direct labor at a rate of $9.90per hour.4.Worked1,580hours of direct labor on Job No. 12.5.Incurred manufacturing overhead on account $16,670.6.Applied overhead to Job No. 12 on basis of standard machine hours allowed.7.Completed Job No. 12.8.Billed customer for Job No. 12 at a selling price of $75,000.

Journalize the transactions.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

1.

2.

3.

4.

5.

6.

7.

8.

(To record sales.)

(To record cost of goods sold.)

Post to the job order cost accounts.(Post entries in the order of journal entries presented in the previous part.)

Raw Materials Inventory

(1)

(2)

(3)

(4)

(5)

(6)

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(8)

(1)

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Factory Labor

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(8)

Manufacturing Overhead

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(8)

Materials Price Variance

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Materials Quantity Variance

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Labor Price Variance

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Labor Quantity Variance

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Work in Process Inventory

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(8)

Finished Goods Inventory

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(8)

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Cost of Goods Sold

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(8)

Prepare the entry to recognize the total overhead variance.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

Prepare the January 2020 income statement for management. Assume selling and administrative expenses were $3,500.

SWIFTYCORPORATION

Income Statement

For the Year Ended January 31, 2020

January 31, 2020

For the Month Ended January 31, 2020

$

Dividends

Expenses

Gross Profit (Actual)

Gross Profit (at Standard)

Net Income / (Loss)

Revenues

Total Expenses

Total Revenues

Total Variance

Variances

Dividends

Expenses

Gross Profit (Actual)

Gross Profit (at Standard)

Net Income / (Loss)

Revenues

Total Expenses

Total Revenues

Total Variance

Variances

$

Neither favorable nor unfavorable

Unfavorable

Favorable

Neither favorable nor unfavorable

Favorable

Unfavorable

Neither favorable nor unfavorable

Favorable

Unfavorable

Favorable

Neither favorable nor unfavorable

Unfavorable

Neither favorable nor unfavorable

Favorable

Unfavorable

Dividends

Expenses

Gross Profit (Actual)

Gross Profit (at Standard)

Net Income / (Loss)

Revenues

Total Expenses

Total Revenues

Total Variance

Variances

Unfavorable

Neither favorable nor unfavorable

Favorable

Dividends

Expenses

Gross Profit (Actual)

Gross Profit (at Standard)

Net Income / (Loss)

Revenues

Total Expenses

Total Revenues

Total Variance

Variances

Dividends

Expenses

Gross Profit (Actual)

Gross Profit (at Standard)

Net Income / (Loss)

Revenues

Total Expenses

Total Revenues

Total Variance

Variances

$