Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TB MC Qu. 10B-99 (Static) Arena Corporation manufactures one... Arena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process

image text in transcribed
image text in transcribed
image text in transcribed
TB MC Qu. 10B-99 (Static) Arena Corporation manufactures one... Arena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process imventorios. The company uses a standard cost syste inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead The standard cost card for the compony's only product is as follows: The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $81,000 and budgeted activity of 18,000 hours During the year, the company completed the following transactions: a. Purchased 35,400 pounds of raw material at a price of $4,60 per pound. b. Used 32,180 pounds of the row material to produce 26,900 units of work in process. c. Assigned direct labor costs to work in process. The direct lobor workers (who were pold in cash) worked 23,810 hours at an average cost of $20.60 per hour. d. Appled fixed overhead to the 26,900 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hour Actual fixed overhead costs for the year were $67,800. Of this total, $3,800 related to liems suth as insurance, utaities, and indirect labor salaries that were al and $64,000 related to depreciation of manufocturing equipment. e. Completed and transferred 26,900 units from work in process to finished goods. f Sold (for cash) 27,100 units to customers at a price of $36.60 per unit. 9. Transferred the standard cost associated with the 27,100 units sold from finished goods to cost of goods sold h. Paid $149,000 of selling and administrative expenses. 1. Closed all stondard cost variances to cost of goods soid. The compary calculated the foliowing variances for the year: To answot the following ouestions, you wil need to record transactions a through I in the worksheet below. This worksheet is similar to the workaheets in yout text except that an has been spit into two parts to fit on the poge pegE (ne0) stands for Property, Ptant, and Equipment net of depreciation. The ending balance in the Finlshed Coods account wil be closest to: The ending balance in the Finished Goods account will be closest to: Muttiple Choice $865,815 $830.505 $76.830 $65,010

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_2

Step: 3

blur-text-image_3

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

Culture Audit In Financial Services Reporting On Behaviour To Conduct Regulators

Authors: Dr Roger Miles

1st Edition

1789667755, 978-1789667752

More Books

Students also viewed these Accounting questions

Question

What are the different categories of financial instruments?

Answered: 1 week ago

Question

define what is meant by the term human resource management

Answered: 1 week ago