Question Root manufactures coffee mugs that it sells to other companies for customizing with their own logos. (Click the icon to view the cost data) Actual cost and production information for July 2018 follows: A (Click the icon to view actual cost and production information.) Root's standard and actual sales price per mug is $6. Root calculated the following variances and recorded the following entries for July 2018. (Click the icon to view variances.) (Click the icon to view journal entries.) Prepare the standard costing income statement for July 2018. (Use a minus sign or parentheses to enter an expenses and/or an operating loss. Enter all other amounts as positive numbers.) Root Standard Cost Income Statement For the Month Ended July 31, 2018 from goliet Pantapan number in the innut field and then continue to the naturaction Gross Profit Operating Income (Loss) moose from any list or enter any number in the input fields and then continue to the next question. s price per mug is $6. Prepare the standard costing income statement for July 2018. (Use a minus sign or parentheses to enter an More Info i Data Table Root prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,900 coffee mugs per month: a. There were no beginning or ending inventory balances. All expenditures were on account b. Actual production and sales were 62,600 coffee mugs c. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per lb. d. Actual direct labor usage was 199,000 minutes at a total cost of $33,830. e. Actual overhead cost was $4,975 variable and $35,925 fixed. f. Selling and administrative costs were $123,000. $ 0.05 0.42 Direct Materials ( 0.2 lbs @ $ 0.25 per lb) Direct Labor (3 minutes @ $ 0.14 per minute) Manufacturing Overhead: Variable (3 minutes @ $ 0.04 per minute) $ Fixed ( 3 minutes @ $ 0.13 per minute) Total Cost per Coffee Mug 0.12 0.39 0.51 Print Done $ 0.98 Print Done] 3 of 6 (5 complete) This QC Reference 2S i Reference F Date Accounts and Explanation Debit Credit Variance Jul. 2,500 800 Direct materials cost variance Direct labor cost variance = $ = $ 1,700 800 F 5,970 U Variance 630 F 1,568 U Jul. 3,130 Direct materials efficiency variance Direct labor efficiency variance = = $ $ 630 Variance 2,500 VOH cost variance VOH efficiency variance = $ = $ Raw Materials Inventory Direct Materials Cost Variance Accounts Payable Purchased direct materials. Work-in-Process Inventory Direct Materials Efficiency Variance Raw Materials Inventory Used direct materials. Work-in-Process Inventory Direct Labor Cost Variance Direct Labor Efficiency Variance Wages Payable Direct labor costs incurred. Manufacturing Overhead Various Accounts 2,985 F 448 U Variance 12,564 U 1,053 F Jul. Variance 26,292 5,970 1,568 FOH cost variance FOH volume variance = $ = $ 33,830 Print Done Jul. 40,900 40,900 Print Done any number in the input fields and then continue to the next
