Sweetwater Company manufactures two products, Mountain Mist and Valley Stream. The company prepares its master budget on the basis of standard costs. The following data are for March.
Assume that the company carries no beginning or ending inventories. Sales in March totaled $3,150,000 for both products combined. Required:
Prepare the journal entries to record the activity for the last month using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the month.
Options from drop down menu (if needed for reference):
Mountain Mist 3 ounces at $15 per ounce 5 hours at $60 per hour $48 $335,340 5,750 Valley Stream 4 ounces at $16.50 per ounce 6 hours at $75 per hour $52.50 $397,800 7,800 Standards Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) 3,100 ounces at $13.50 per ounce 4,900 hours at $60.75 per hour $242,550 $313,950 1,000 units 4,700 ounces at $17.25 per ounce 7,400 hours at $76.50 per hour $378,510 $396,000 1,200 units Complete this question by entering your answers in the tabs below. Mountain Mist Valley Stream Variances Prepare the journal entries to record the activity of Mountain Mist for the last month using standard costing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Credit General Journal Work-in-process inventory (Mountain Mist) Materials efficiency variance (Mountain Mist) Debit 45,000 A B B Work-in-process inventory (Mountain Mist) Direct labor price variance (Mountain Mist) Direct labor efficiency variance (Mountain Mist) Work-in-process inventory (Mountain Mist) Variable overhead (applied) D Variable overhead (actual) Miscellaneous payables and inventory accounts > E Variable overhead price variance (Mountain Mist) Variable overhead (applied) Variable overhead efficiency variance (Mountain Mist) Variable overhead (actual) 242,550 F Work-in-process inventory (Mountain Mist) Fixed overhead (applied) G Fixed overhead (actual) Miscellaneous payables and inventory accounts H Fixed overhead (applied) Fixed overhead production volume variance (Mountain Mist) Fixed overhead price variance (Mountain Mist) Fixed overhead (actual) Mountain Mist Valley Stream Variances Prepare the journal entries to record the activity of Valley Stream Costs for the last month using standard costing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Mountain Mist Valley Stream Variances Prepare the journal entries to close all variances to Cost of Goods Sold at the end of the month. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No journal entry required Accounts payable Accounts receivable Cash Cost of goods sold (Mountain Mist) Cost of goods sold (Valley Stream) Direct labor efficiency variance (Mountain Mist) Direct labor efficiency variance (Valley Stream) Direct labor price variance (Mountain Mist) Direct labor price variance (Valley Stream) Finished goods inventory (Mountain Mist) Finished goods inventory (Valley Stream) Fixed overhead (actual) Fixed overhead (applied) Fixed overhead price variance (Mountain Mist) Fixed overhead price variance (Valley Stream) Fixed overhead production volume variance (Mountain Mist) Fixed overhead production volume variance (Valley Stream) Materials Materials efficiency variance (Mountain Mist) Materials Efficiency Variance (Valley Stream) Materials price variance (Mountain Mist) Materials price variance (Valley Stream) Miscellaneous payables and inventory accounts Overhead (actual) Sales revenue Variable overhead (actual) Variable overhead (applied) Variable overhead efficiency variance (Mountain Mist) Variable overhead efficiency variance (Valley Stream) Variable overhead price variance (Mountain Mist) Variable overhead price variance (Valley Stream) Wages payable Work-in-process inventory (Mountain Mist) Work-in-process inventory (Valley Stream)
