Problem 24.3A

PROBLEM 24.3A Computing and Journalizing Cost Variances Bottom-Shelf Provisions uses standard costs in its process costing system. At the end of the current month, the following information is prepared by the company's cost accountant. complete. There was no inventory in process at the beginning of the month. page 1074 Instructions b. Prepare journal entries to record (1) the transfer of units finished to the Finished Goods Inventory account and (2) the Cost of Goods Sold (at standard) for the month. c. Assuming that the company operated at 70 percent of its normal capacity during the current month, what is the amount of the budgeted fixed manufacturing overhead per month? Problem 24.3A Sample Worked Problem: Problem 24.3B Part A BOTTOM-SHELF PROVISIONS General Journal \begin{tabular}{|l|l|} \hline \hline (1) & Work in Process (standard cost) \\ \hline & Materials Quantity Variance \\ \hline & Materials Price Variance \\ \hline & Direct Materials Inventory (actual cost) \\ \hline \end{tabular} (To record materials used) \begin{tabular}{|l|l|} \hline (2) & Work in Process (standard cost) \\ \hline & Labor Efficiency Variance \\ \hline & Labor Rate Variance \\ \hline & Direct Labor (actual cost) \\ \hline \end{tabular} (To record direct labor cost.) \begin{tabular}{|l|l||l||l|} \hline (3) & Work in Process (standard cost) & & \\ \hline & Overhead Spending Variance & & \\ \hline & Overhead Volume Variance & & \\ \hline & Manufacturing Overhead (actual cost) & & \\ \hline \end{tabular} (To record manufacturing overhead assigned to production, and to record overhead variances) Part B (1) Finished Goods Inventory (at standard cost) Work in Process (at standard cost) (To transfer cost of units completed to finished goods inventory.) \begin{tabular}{|l|l||l|l|} \hline (2) & Cost of Goods Sold (at standard cost) & \\ \hline & FinishedGoodsInventory(atstandardcost) & & \\ \hline (To record cost of units sold) \\ \hline \hline Part C \\ \hline \hline \end{tabular} PROBLEM 24.3A Computing and Journalizing Cost Variances Bottom-Shelf Provisions uses standard costs in its process costing system. At the end of the current month, the following information is prepared by the company's cost accountant. complete. There was no inventory in process at the beginning of the month. page 1074 Instructions b. Prepare journal entries to record (1) the transfer of units finished to the Finished Goods Inventory account and (2) the Cost of Goods Sold (at standard) for the month. c. Assuming that the company operated at 70 percent of its normal capacity during the current month, what is the amount of the budgeted fixed manufacturing overhead per month? Problem 24.3A Sample Worked Problem: Problem 24.3B Part A BOTTOM-SHELF PROVISIONS General Journal \begin{tabular}{|l|l|} \hline \hline (1) & Work in Process (standard cost) \\ \hline & Materials Quantity Variance \\ \hline & Materials Price Variance \\ \hline & Direct Materials Inventory (actual cost) \\ \hline \end{tabular} (To record materials used) \begin{tabular}{|l|l|} \hline (2) & Work in Process (standard cost) \\ \hline & Labor Efficiency Variance \\ \hline & Labor Rate Variance \\ \hline & Direct Labor (actual cost) \\ \hline \end{tabular} (To record direct labor cost.) \begin{tabular}{|l|l||l||l|} \hline (3) & Work in Process (standard cost) & & \\ \hline & Overhead Spending Variance & & \\ \hline & Overhead Volume Variance & & \\ \hline & Manufacturing Overhead (actual cost) & & \\ \hline \end{tabular} (To record manufacturing overhead assigned to production, and to record overhead variances) Part B (1) Finished Goods Inventory (at standard cost) Work in Process (at standard cost) (To transfer cost of units completed to finished goods inventory.) \begin{tabular}{|l|l||l|l|} \hline (2) & Cost of Goods Sold (at standard cost) & \\ \hline & FinishedGoodsInventory(atstandardcost) & & \\ \hline (To record cost of units sold) \\ \hline \hline Part C \\ \hline \hline \end{tabular}