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Variances, Entries, and Income StatementA summary of Glendale Company's manufacturing variance report for May follows:Total Standard Costs ( 9 , 2 0 0 units )
Variances, Entries, and Income StatementA summary of Glendale Company's manufacturing variance report for May follows:Total Standard Costs unitsActual Costs unitsVariancesDirect material$$$UDirect laborFVariable overheadFFixed overhead$$$UStandard material cost per unit of product is pounds at $ per pound, and standard direct labor cost is hours at $ per hour. The total actual materials cost represents pounds purchased at $ per pound. Total actual labor cost represents hours at $ per hour. According to standards, variable overhead rate is applied at $ per direct labor hour based on a normal capacity of direct labor hours or units of product Assume that all fixed overhead is applied to work in progress inventory.a Determine the following variances:Do not use negative signs with any of your answers. Next to each variance answer, select either F for Favorable or U for Unfavorable.Materials VariancesActual cost:AnswerCorrectMark out of Split cost:AnswerIncorrectMark out of Standard cost:AnswerCorrectMark out of Materials priceAnswerIncorrectMark out of AnswerFUCorrectMark out of Materials efficiencyAnswerIncorrectMark out of AnswerFUCorrectMark out of Labor VariancesActual cost:AnswerCorrectMark out of Split cost:AnswerIncorrectMark out of Standard cost:AnswerCorrectMark out of Labor rateAnswerIncorrectMark out of AnswerFUCorrectMark out of Labor efficiencyAnswerIncorrectMark out of AnswerFUCorrectMark out of Variable Overhead VariancesActual cost:AnswerCorrectMark out of Split cost:AnswerIncorrectMark out of Standard cost:AnswerCorrectMark out of Variable overhead spendingAnswerCorrectMark out of AnswerFUCorrectMark out of Variable overhead efficiencyAnswerIncorrectMark out of AnswerFUCorrectMark out of b Prepare general journal entries to record standard costs, actual costs, and related variances for material, labor, and overhead.General JournalDescriptionDebitCreditMaterials inventoryAnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerCorrectMark out of To record the purches of direct materialsWork in process inventoryAnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerIncorrectMark out of To record the use of direct materialsWork in process inventoryAnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of Labor rate varianceAnswerCorrectMark out of AnswerIncorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerIncorrectMark out of To record direct labor costs and related cost variances.Work in process inventoryAnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerIncorrectMark out of Manufactruing overheadAnswerCorrectMark out of AnswerIncorrectMark out of To apply variable overhead to work in progress and record related cost variancesAnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerCorrectMark out of To apply fixed overhead to work in progressc. Prepare journal entries to record the transfer of all completed units to Finished Goods Inventory and the subsequent sale of units on account at $ each assume no beginning finished goods inventoryGeneral JournalDescriptionDebitCreditAnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerIncorrectMark out of To record completion ofunitsAnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerIncorrectMark out of To record sale ofunitsAnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerIncorrectMark out of To record cost ofunitsd. Prepare a partial income statement through gross profit on sales showing gross profit based on standard costs, the incorporation of variances, and gross profit based on actual costs.Do not use negative signs with any of your answers below.Glendale CompanyPartial Income StatementFor the Month Ended May SalesAnswerCorrectMark out of Cost of goods at standard costAnswerIncorrectMark out of Gross profit at standard costAnswerIncorrectMark out of Net cost varianceMaterialAnswerIncorrectMark out of LaborAnswerIncorrectMark out of Variable overheadAnswerIncorrectMark out of AnswerIncorrectMark out of Gross profit at actual costAnswerIncorrectMark out of
Variances, Entries, and Income StatementA summary of Glendale Company's manufacturing variance report for May follows:Total Standard Costs unitsActual Costs unitsVariancesDirect material$$$UDirect laborFVariable overheadFFixed overhead$$$UStandard material cost per unit of product is pounds at $ per pound, and standard direct labor cost is hours at $ per hour. The total actual materials cost represents pounds purchased at $ per pound. Total actual labor cost represents hours at $ per hour. According to standards, variable overhead rate is applied at $ per direct labor hour based on a normal capacity of direct labor hours or units of product Assume that all fixed overhead is applied to work in progress inventory.a Determine the following variances:Do not use negative signs with any of your answers. Next to each variance answer, select either F for Favorable or U for Unfavorable.Materials VariancesActual cost:AnswerCorrectMark out of Split cost:AnswerIncorrectMark out of Standard cost:AnswerCorrectMark out of Materials priceAnswerIncorrectMark out of AnswerFUCorrectMark out of Materials efficiencyAnswerIncorrectMark out of AnswerFUCorrectMark out of Labor VariancesActual cost:AnswerCorrectMark out of Split cost:AnswerIncorrectMark out of Standard cost:AnswerCorrectMark out of Labor rateAnswerIncorrectMark out of AnswerFUCorrectMark out of Labor efficiencyAnswerIncorrectMark out of AnswerFUCorrectMark out of Variable Overhead VariancesActual cost:AnswerCorrectMark out of Split cost:AnswerIncorrectMark out of Standard cost:AnswerCorrectMark out of Variable overhead spendingAnswerCorrectMark out of AnswerFUCorrectMark out of Variable overhead efficiencyAnswerIncorrectMark out of AnswerFUCorrectMark out of b Prepare general journal entries to record standard costs, actual costs, and related variances for material, labor, and overhead.General JournalDescriptionDebitCreditMaterials inventoryAnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerCorrectMark out of To record the purches of direct materialsWork in process inventoryAnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerIncorrectMark out of To record the use of direct materialsWork in process inventoryAnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of Labor rate varianceAnswerCorrectMark out of AnswerIncorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerIncorrectMark out of To record direct labor costs and related cost variances.Work in process inventoryAnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerIncorrectMark out of Manufactruing overheadAnswerCorrectMark out of AnswerIncorrectMark out of To apply variable overhead to work in progress and record related cost variancesAnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerCorrectMark out of To apply fixed overhead to work in progressc. Prepare journal entries to record the transfer of all completed units to Finished Goods Inventory and the subsequent sale of units on account at $ each assume no beginning finished goods inventoryGeneral JournalDescriptionDebitCreditAnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerIncorrectMark out of To record completion ofunitsAnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerIncorrectMark out of To record sale ofunitsAnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerIncorrectMark out of AnswerCorrectMark out of AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryLabor efficiency varianceManufacturing overheadMaterials efficiency varianceMaterials inventoryMaterials price varianceSalesVariable overhead efficiency varianceVariable overhead spending varianceWages payableWork in process inventoryCorrectMark out of AnswerCorrectMark out of AnswerIncorrectMark out of To record cost ofunitsd. Prepare a partial income statement through gross profit on sales showing gross profit based on standard costs, the incorporation of variances, and gross profit based on actual costs.Do not use negative signs with any of your answers below.Glendale CompanyPartial Income StatementFor the Month Ended May SalesAnswerCorrectMark out of Cost of goods at standard costAnswerIncorrectMark out of Gross profit at standard costAnswerIncorrectMark out of Net cost varianceMaterialAnswerIncorrectMark out of LaborAnswerIncorrectMark out of Variable overheadAnswerIncorrectMark out of AnswerIncorrectMark out of Gross profit at actual costAnswerIncorrectMark out of
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Principles of Information Systems
Authors: Ralph M. Stair, George W. Reynolds
9th edition
978-1337097536, 1337097535, 978-1337515634, 1337515639, 978-0324665284
