Quality Company uses a standard cost system and reports the following information for 2024​: 1​(Click the icon to view the​ information.) Quality Company reported the following​ variances: 2​(Click...







Quality

Company uses a standard cost system and reports the following information for
2024​:



1​(Click

the icon to view the​ information.)








Quality

Company reported the following​ variances:


2​(Click

the icon to view the​ variances.)


Quality

produced
1,000

units of finished product in
2024.



Read the
requirements3.









Begin by journalizing the purchase of direct materials on​ account, including the related variance. ​(Prepare a single compound journal​ entry.)





















































Date



Accounts and Explanation



Debit



Credit





(1)


















(2)


















(3)


















(4)


















(5)









​Now, journalize the usage of direct​ materials, including the related variance. ​(Prepare a single compound journal​ entry.)





















































Date



Accounts and Explanation



Debit



Credit





(6)


















(7)


















(8)


















(9)


















(10)









Journalize the incurrance and assignment of direct labor​ costs, including the related variances. ​(Prepare a single compound journal​ entry.)





















































Date



Accounts and Explanation



Debit



Credit





(11)


















(12)


















(13)


















(14)


















(15)









Journalize the entry to show the actual manufacturing overhead costs incurred.





















































Date



Accounts and Explanation



Debit



Credit





(16)


















(17)


















(18)


















(19)


















(20)









Record the overhead allocated to​ Work-in-Process Inventory.





















































Date



Accounts and Explanation



Debit



Credit





(21)


















(22)


















(23)


















(24)


















(25)









Journalize the movement of all production from​ Work-in-Process Inventory.





















































Date



Accounts and Explanation



Debit



Credit





(26)


















(27)


















(28)


















(29)


















(30)









Record the entry to transfer the cost of sales at standard cost.





















































Date



Accounts and Explanation



Debit



Credit





(31)


















(32)


















(33)


















(34)


















(35)









Journalize the adjusting of the Manufacturing Overhead account. ​(Prepare a single compound journal​ entry.)





























































Date



Accounts and Explanation



Debit



Credit





(36)


















(37)


















(38)


















(39)


















(40)


















(41)











1: Data Table



































Standards:


3 yards of cloth per unit at $1.15 per yard


2 direct labor hours per unit at $19.50 per hour


Overhead allocated at $6.00 per direct labor hour


Actual:


2,400 yards of cloth were purchased at $1.20 per yard


Employees worked 1,200 hours and were paid $19.00 per hour


Actual variable overhead was $2,200


Actual fixed overhead was $8,500







2: Data Table








































Direct materials cost variance


$120 U


Direct materials efficiency variance


690 F


Direct labor cost variance


600 F


Direct labor efficiency variance


15,600 F


Variable overhead cost variance


1,600 U


Variable overhead efficiency variance


1,600 F


Fixed overhead cost variance


200 U


Fixed overhead volume variance


1,500 F







3: Requirements


Record the journal entries for direct​ materials, direct​ labor, variable​ overhead, and fixed​ overhead, assuming all expenditures were on account and there were no beginning or ending balances in the inventory accounts​ (all materials purchased were used in​ production, and all goods produced were​ sold). Record the journal entries for the transfer to Finished Goods Inventory and Cost of Goods Sold​ (omit the journal entry for Sales​ Revenue). Record the journal entry to adjust the Manufacturing Overhead account. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)







(1)





Accounts Payable



Cost of Goods Sold



Direct Labor Cost Variance





Direct Labor Efficiency Variance



Direct Materials Cost Variance



Direct Materials Efficiency Variance



Finished Goods Inventory





Fixed Overhead Cost Variance



Fixed Overhead Volume Variance



Manufacturing Overhead



Raw Materials Inventory





Variable Overhead Cost Variance



Variable Overhead Efficiency Variance



Wages Payable



Work-in-Process Inventory







(2)





Accounts Payable



Cost of Goods Sold



Direct Labor Cost Variance





Direct Labor Efficiency Variance



Direct Materials Cost Variance



Direct Materials Efficiency Variance



Finished Goods Inventory





Fixed Overhead Cost Variance



Fixed Overhead Volume Variance



Manufacturing Overhead



Raw Materials Inventory





Variable Overhead Cost Variance



Variable Overhead Efficiency Variance



Wages Payable



Work-in-Process Inventory







(3)





Accounts Payable



Cost of Goods Sold



Direct Labor Cost Variance





Direct Labor Efficiency Variance



Direct Materials Cost Variance



Direct Materials Efficiency Variance



Finished Goods Inventory





Fixed Overhead Cost Variance



Fixed Overhead Volume Variance



Manufacturing Overhead



Raw Materials Inventory





Variable Overhead Cost Variance



Variable Overhead Efficiency Variance



Wages Payable



Work-in-Process Inventory





Jun 10, 2022
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