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Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for the period just ended include the following: Actual fixed manufacturing overhead Actual variable manufacturing overhead Applied fixed manufacturing overhead Applied variable manufacturing overhead Production volume variance Variable overhead efficiency variance $180,000 132,000 200,000 126,000 10,000 F 4,000 F Five percent of this period's production has not been sold. There are never any work-in-process inventories. Required: a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances.

Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for the period just ended include the following: Actual fixed manufacturing overhead Actual variable manufacturing overhead Applied fixed manufacturing overhead Applied variable manufacturing overhead Production volume variance Variable overhead efficiency variance $180,000 132,000 200,000 126,000 10,000 F 4,000 F Five percent of this period's production has not been sold. There are never any work-in-process inventories. Required: a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 15E: Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing...
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Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for the period just ended include the following: Actual fixed manufacturing overhead Actual variable manufacturing overhead Applied fixed manufacturing overhead. Applied variable manufacturing overhead Production volume variance Variable overhead efficiency variance Five percent of this period's production has not been sold. There are never any work-in-process inventories. Required: a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances. Required A Required B Complete this question by entering your answers in the tabs below. View transaction list Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet < A B C D E $180,000 132,000 200,000 126,000 Note: Enter debits before credits. Record the purchase of various variable overhead resources. Event 1 10,000 F 4,000 F Record entry General Journal Clear entry Required A Debit Credit View general journal Required B >
Transcribed Image Text:Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for the period just ended include the following: Actual fixed manufacturing overhead Actual variable manufacturing overhead Applied fixed manufacturing overhead. Applied variable manufacturing overhead Production volume variance Variable overhead efficiency variance Five percent of this period's production has not been sold. There are never any work-in-process inventories. Required: a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances. Required A Required B Complete this question by entering your answers in the tabs below. View transaction list Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet < A B C D E $180,000 132,000 200,000 126,000 Note: Enter debits before credits. Record the purchase of various variable overhead resources. Event 1 10,000 F 4,000 F Record entry General Journal Clear entry Required A Debit Credit View general journal Required B >
Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for the period just ended include the following: Actual fixed manufacturing overhead Actual variable manufacturing overhead Applied fixed manufacturing overhead Applied variable manufacturing overhead Production volume variance Variable overhead efficiency variance Five percent of this period's production has not been sold. There are never any work-in-process inventories. Required: a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances. Complete this question by entering your answers in the tabs below. Required A Required B Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet < A B C D E Record the purchase of various variable overhead resources. Note: Enter debits before credits. $180,000 132,000 200,000 126,000 10,000 F 4,000 F Event 1 Record entry General Journal Clear entry < Required A Debit Credit View general journal Required B >
Transcribed Image Text:Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for the period just ended include the following: Actual fixed manufacturing overhead Actual variable manufacturing overhead Applied fixed manufacturing overhead Applied variable manufacturing overhead Production volume variance Variable overhead efficiency variance Five percent of this period's production has not been sold. There are never any work-in-process inventories. Required: a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances. Complete this question by entering your answers in the tabs below. Required A Required B Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet < A B C D E Record the purchase of various variable overhead resources. Note: Enter debits before credits. $180,000 132,000 200,000 126,000 10,000 F 4,000 F Event 1 Record entry General Journal Clear entry < Required A Debit Credit View general journal Required B >
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