Variances-journal entries

Assignment Help Accounting Basics
Reference no: EM1356215

Aquafloat Corporation manufactures raft for us in swimming pools. The standard cost for material and labor is $89.20 per raft. This includes 8 kilograms of direct material at a standard cost of $5.00 per kilogram, and 6 hours of direct labor at $8.20 per hour. The following data pertain to November.

* Work-in-process inventory on November 1:none

* Work-in-process inventory on November 30:800 units (75 percent complete as to labor; material is issued at the beginning of processing).

* Units completed: 5,600 units.

* Purchases of materials: 50,000 kilograms for $249,250

* Total actual labor costs: $300,760

* Actual hours of labor: 36,500 hours

* Direct-material quantity variance: $1,500 unfavorable.

Required:

1. compute the following amounts. Indicate whether each variance is favorable or unfavorable.

a. Direct-labor rate variance for November

b. Direct-labor efficiency variance for November

c. Actual kilograms of material used in the production process during November.

d. Actual price paid per kilogram of direct material in November

e. Total amounts of direct-material and direct-labor cost transferred to Finished-Goods Inventory during November

f. The total amount of direct-material and direct-labor cost transferred to Finished-Goods Inventory during November

2. Prepare journal entries to record the following:

* Purchase of raw material.

* Adding direct material to Work-in-Process Inventory.

* Adding direct labor to Work-in-Process Inventory.

* Recording of variances.

Reference no: EM1356215

Questions Cloud

Journal entries for payroll and payroll tax : Total payroll was $480,000, of which $110,000 is exempt fro mSocial Security tax because it represented amounts paid in excess of $90,000 to certain employees. Prepare the necessary journal entries if the wages and salaries paid and the employer p..
Calculate the ear for each investment : You have found three investment choices for a one year deposit: Compute the EAR for 10% APR compounded monthly, 10 percent APR compounded annually and 9% compounded daily.
Standard error of measurement : Many assessment results are reported with a "standard error of measurement" - this recognizes that, if the test was taken again by the same participant, under identical circumstances, the results would likely be a little bit different.
Global pay structures : It provides the learner with an understanding of the intricities associated with Global Pay Structures
Variances-journal entries : Aquafloat Corporation manufactures raft for us in swimming pools. The standard cost for material and labor is $89.20 per raft. Compute the following amounts. Indicate whether each variance is favorable or unfavorable.
Perform a financial analysis on organization : Locate the financial section of the organization's most recent year report. Perform a financial analysis on your selected organization to include liquidity, efficiency, and asset management, debt management, profitability ratios, and market returns.
Quality of care for an assisted living facility : Expalin why is it important to have a risk management process or framework for an assisted living facility and how would a risk management process improve the quality of care for an assisted living facility?
Explain networking and negotiation and communication : Explain Networking and Negotiation and Communication and What has the best experience been for you as a follower and as a leader?
Explain what is the purpose of free trade agreements : Explain what is the purpose of free trade agreements and how does the establishment of free trade represent a threat and an opportunity for global corporations?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Journal entries for collections with cash discounts

Prepare the journal entries to record the November 17, 2011 (ignore cost of goods) and collection on November 26, 2011, assuming that the gross method of accounting for cash discounts is used.

  Reported net asset balance of categories

What should be the reported net asset balance of the following categories during 2011: permanent restricted, temporarily restricted, unrestricted.

  Detailed examination of outstanding accounts

A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time past due is the:

  Arantxa corporation-equity securities journal entries

Make the journal entries to record the above three securities purchases. Make the journal entry for the security sale on May 20. Compute the unrealized gains or losses and prepare the adjusting entry for Arantxa on December 31, 2008.

  Computation of segment return

If the manager of the Eastern Division is evaluated on return on investment alone, will the manager invest in the new project? Explain.

  Information about risk aversion

Risk aversion implies which some securities will go unpurchased in market even if a large risk premium is paid to investors.

  Implementing the change to equity method

Gerken Company concluded at the beginning of 2013 that the company's ownership interest in DillCo had increased to the point that it became appropriate to begin using the equity method to account for the investment.

  Accounting cycle-sample financial statements

Collect the 4 main financial statements from credible sources (newspaper, peer-reviewed journals, investor relations, web sites or annual reports. Create a flow chart that illustrates the steps in the accounting cycle.

  Sox framework-business model fraud in financial accounting

Examine how the SOX framework can prevent business model fraud in financial accounting and managerial accounting.

  Tabular analysis of transactions

A tabular analysis of the transactions made during August 2010 by Witten Company during its first month of operations is shown below. Each increase and decrease in stockholders' equity is explained.

  Annual cash outflow for operating costs

Jim Bingham is considering starting a small catering business. He would need to purchase a delivery van and several equipment costing $125,000 to equip the business and another $60,000 for inventories

  Determining short sale

Assume you're bearish on Stock Y and decide to sell short 100 shares at the current market price of $30 per share. You earn no interest on the funds in your margin account and the cost of borrowing shares is 0.25%.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd