Required: 1 & 2. Prepare the journal entries to record the direct materials, direct labor and related variances for Barley Hopp. Assume the company purchases direct materials as needed and does not maintain any ending inventories. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
Required: 1 & 2. Prepare the journal entries to record the direct materials, direct labor and related variances for Barley Hopp. Assume the company purchases direct materials as needed and does not maintain any ending inventories. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
![Barley Hopp, Incorporated, manufactures custom-ordered commemorative beer steins. Its standard cost information follows:
Standard
Unit
Cost
$ 1.76
13.80
Direct materials (clay)
Direct labor
Variable manufacturing overhead (based on
direct labor hours)
Fixed manufacturing overhead ($256,020 ÷
102,000 units)
Barley Hopp had the following actual results last year:
Number of units produced and sold
Number of pounds of clay purchased and used
Cost of clay
Number of labor hours worked
Direct labor cost
Variable overhead cost
Fixed overhead cost
View transaction list
Journal entry worksheet
A
Standard Quantity
1.6 pounds
2.3 hours
B
2.3 hours
98, 200
177, 120
$177,120
Required:
1 & 2. Prepare the journal entries to record the direct materials, direct labor and related variances for Barley Hopp. Assume the
company purchases direct materials as needed and does not maintain any ending inventories.
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
Record the entry for direct materials costs and variances.
205,860
$ 1,543,950
$ 452,892
$ 290,000
Standard Price (Rate)
$ 1.10 per pound
$6.00 per hour
$ 1.70 per hour
3.91
2.51](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe92c3e44-4ec3-4e81-a3a5-61160612dcbb%2F61b9aaee-69a8-4d54-b287-a18d1ea2924c%2Fshpy09_processed.png&w=3840&q=75)
Transcribed Image Text:Barley Hopp, Incorporated, manufactures custom-ordered commemorative beer steins. Its standard cost information follows:
Standard
Unit
Cost
$ 1.76
13.80
Direct materials (clay)
Direct labor
Variable manufacturing overhead (based on
direct labor hours)
Fixed manufacturing overhead ($256,020 ÷
102,000 units)
Barley Hopp had the following actual results last year:
Number of units produced and sold
Number of pounds of clay purchased and used
Cost of clay
Number of labor hours worked
Direct labor cost
Variable overhead cost
Fixed overhead cost
View transaction list
Journal entry worksheet
A
Standard Quantity
1.6 pounds
2.3 hours
B
2.3 hours
98, 200
177, 120
$177,120
Required:
1 & 2. Prepare the journal entries to record the direct materials, direct labor and related variances for Barley Hopp. Assume the
company purchases direct materials as needed and does not maintain any ending inventories.
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
Record the entry for direct materials costs and variances.
205,860
$ 1,543,950
$ 452,892
$ 290,000
Standard Price (Rate)
$ 1.10 per pound
$6.00 per hour
$ 1.70 per hour
3.91
2.51
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning