+1-415-670-9189
info@expertsmind.com
Prepare a journal entry to record the purchase of material
Course:- Financial Accounting
Reference No.:- EM131146343




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Accounting

Bechtel Technical Clothing produces parkas used by arctic explorers, mountain climbers, and people living in Minnesota. The company uses a standard costing system, and standards call for 2.5 yards of material at $54 per yard for each parka. The standard cost for labor is 3.4 hours at $34 per hour. Standard overhead is $14 per unit. For the year 2015, expected production is 7,900 parkas with fixed overhead of $51,000 and variable overhead of $6.1 per parka.

During 2015, 8,500 parkas were manufactured. The company purchased 23,600 yards of material at a cost of $1,345,200. Production required 22,200 yards of material. The cost of direct labor was $1,040,000 for 27,700 hours. Actual overhead for the year was $86,300. All purchases are on account.

a. Prepare a journal entry to record the purchase of material.

b. Prepare a journal entry to record material used in production.

c. Prepare a journal entry to record direct labor.

d. Prepare a journal entry to record actual overhead and overhead applied.

e. Prepare a journal entry to close the variances in requirements a through d to Cost of Goods Sold.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Accounting) Materials
West Corp. owned 70% of the voting common stock of East Co. East owned 60% of Compass Co. West and East both used the initial value method to account for their investments.
Briefly identify and define the cost elements that are incurred in making a product. After product cost elements are identified, how is the cost of goods manufactured for a
Hoosier Food, Inc. is a producer of frozen meals. Its current line of stir fries are selling excellently. However, in order to cope with the foreseeable competition with other
There were 4400 units in the ending work in process inventory of the assembly dept. that were 30% complete with respect to conversion costs. Illustrate what were the equival
For the purposes of the balance sheet preparation, there are several different measurement bases are used (historical cost, depreciated historical cost, market value, realizab
Assume the M furniture company sells two kinds of picnic tables. Pine and redwood. At a 2:1 unit sales mix in which M company sell two pine tables for every redwood table. Cur
What are 5 characteristics of a partnership? Be detailed in your descriptions of each characteristic. Provide examples when appropriate. Also, as part of your descriptions, id
On October 1, 2014, Sanford Consulting Services, Inc. was started by James and a group of investors and during the month of October the company completed the following transac