Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ripley Corporation has supplied the following information obtained from its standard cost system in June: Standard price of direct materials $ 6 per pound Actual

Ripley Corporation has supplied the following information obtained from its standard cost system in June:

Standard price of direct materials $ 6 per pound
Actual price of direct materials $ 5 per pound
Standard direct labor rate $ 9 per hour
Actual direct labor hours in June 9,500 hours

The following journal entries were made during June with respect to Ripleys standard cost system:

General Journal Debit Credit
Work in Process Inventory (at standard cost) $ 48,000
Materials Quantity Variance 1,200
Direct Materials Inventory (at actual cost) $ 41,000
Materials Price Variance 8,200
To record the cost of direct materials used in June.
Work in Process Inventory (at standard cost) $ 81,000
Labor Rate Variance 950
Labor Efficiency Variance 4,500
Direct Labor (at actual cost) $ 86,450
To record the cost of direct labor charged to production in June.
Work in Process Inventory (at standard cost) $ 25,000
Overhead Spending Variance 2,000
Overhead Volume Variance $ 5,000
Manufacturing Overhead (at actual cost) 22,000
To apply overhead to production in June.

Required:

Determine the standard direct labor hours allowed for the production output achieved during June.

Close all cost variances directly to the Cost of Goods Sold account at the end of June.

Was Ripley's production output in June more or less than its normal level of output?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

3rd Edition

9780078025525, 9780077517359, 77517350, 978-0077398194

Students also viewed these Accounting questions

Question

600 lb 20 0.5 ft 30 30 5 ft

Answered: 1 week ago