Loose-Leaf for Fundamentals of Cost Accounting
5th Edition
ISBN: 9781259728914
Author: William N. Lanen Professor, Shannon Anderson Associate Professor, Michael W Maher
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 16, Problem 37E
(Appendix used in requirement [b]) Variable Cost Variances
Information on Bowgie Chemicals direct materials costs follows:
![Chapter 16, Problem 37E, (Appendix used in requirement [b]) Variable Cost Variances Information on Bowgie Chemicals direct](http://dev-ingestion-image-output.s3-website-us-east-1.amazonaws.com/9781259565403/Chapter-16/images/65403-16-37e-question-digital_image_001.png)
Bowgie Chemicals has no materials inventories.
Required
- a. Prepare a short report for management showing Bowgie Chemicals’s direct materials price and efficiency variances.
- b. (Appendix) Prepare the
journal entries to record the purchase and use of the direct materials usingstandard costing .
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Required:
1. Prepare summary journal entries for April (without disposing of under-
or overallocated conversion costs). Assume no direct materials variances.
2. Post the entries in requirement 1 to T-accounts for applicable Inventory
Control, Conversion Costs Control, Conversion Costs Allocated and Cost
of Goods Sold.
3. Under an ideal JIT production system, how would the amounts in your
journal entries differ from those in requirement 1?
Required informetion
[The following information applies to the questions displayed below.j
Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The
following standards have been set by the production-engineering staff and the controller.
Direct Labor:
Direct Material:
Quantity, 0.25 hour
Quantity, 4 kilograms
Price, $8.60 per kilogram
Rate, $12.50 per hour
Actual material purchases amounted to 200,000 kilograms at $0.640 per kilogram. Actual costs incurred In the production
of 40,000 units were as follows:
Direct labor:
$137, 700 for 10,800 hours
$188, 800 for 170,000 kilograms
Direct material:
Q) Prepare journal entries for variable and fixed manufacturing overhead costs and variances;write off these variances to cost of goods sold.
Chapter 16 Solutions
Loose-Leaf for Fundamentals of Cost Accounting
Ch. 16 - What are the advantages of the contribution margin...Ch. 16 - How can a budget be used for performance...Ch. 16 - The flexible budget for coats it computed by...Ch. 16 - A flexible budget is: a. Appropriate for control...Ch. 16 - What is the standard cost sheet?Ch. 16 - What is the basic difference between a mailer...Ch. 16 - Standards and budgets are the same thing. True or...Ch. 16 - Actual direct materials costs differ from the...Ch. 16 - Fixed cost variances are computed differently from...Ch. 16 - What is the advantage of preparing the flexible...
Ch. 16 - What is the link between flexible budgeting and...Ch. 16 - Actual revenues are greater than budgeted for...Ch. 16 - Pick an organization you know, such as a school,...Ch. 16 - Give two reasons why dividing production cost...Ch. 16 - Prob. 15CADQCh. 16 - My firm has a wage contract with the union....Ch. 16 - Prob. 17CADQCh. 16 - The production volume variance should be charged...Ch. 16 - Prob. 19CADQCh. 16 - Prob. 20CADQCh. 16 - Flexible Budgeting The master budget at Western...Ch. 16 - Sales Activity Variance Refer to the data in...Ch. 16 - Profit Variance Analysis Refer to the data in...Ch. 16 - Flexible Budget Given the data shown in the...Ch. 16 - Fill in Amounts on Flexible Budget Graph Fill in...Ch. 16 - Flexible Budget Label (a) and (b) in the graph and...Ch. 16 - Prepare Flexible Budget Osage, Inc., manufactures...Ch. 16 - Sales Activity Variance Refer to the data in...Ch. 16 - Profit Variance Analysis Use the information from...Ch. 16 - Sales Activity Variance The following data are...Ch. 16 - Sales Activity Variance Selected data for October...Ch. 16 - Prob. 32ECh. 16 - Prob. 33ECh. 16 - Prob. 34ECh. 16 - Variable Cost Variances The following data reflect...Ch. 16 - Variable Cost Variances The records of Norton,...Ch. 16 - (Appendix used in requirement [b]) Variable Cost...Ch. 16 - (Appendix used in requirement [b]) Variable Cost...Ch. 16 - Fixed Cost Variances Information on Carney...Ch. 16 - Prob. 40ECh. 16 - Prob. 41ECh. 16 - Fixed Cost Variances Mint Company applies fixed...Ch. 16 - (Appendix used in requirement [c]) Comprehensive...Ch. 16 - Comprehensive Cost Variance Analysis NSF Lube is a...Ch. 16 - Overhead Variances Brice Corporation shows the...Ch. 16 - Solve for Master Budget Given Actual Results A new...Ch. 16 - Find Missing Data for Profit Variance Analysis...Ch. 16 - Find Data for Profit Variance Analysis Required...Ch. 16 - Prob. 49PCh. 16 - Prepare Flexible Budget Odessa, Inc., reports the...Ch. 16 - Sales Activity Variance Refer to the data in...Ch. 16 - Prob. 52PCh. 16 - Prob. 53PCh. 16 - Prob. 54PCh. 16 - Prob. 55PCh. 16 - Direct Materials Information about direct...Ch. 16 - Prob. 57PCh. 16 - Prob. 58PCh. 16 - Prob. 59PCh. 16 - Overhead Cost and Variance Relationships...Ch. 16 - Prob. 61PCh. 16 - Prob. 62PCh. 16 - Ethics and Standard Costs Farmer Franks produces...Ch. 16 - Comprehensive Variance Problem The standard cost...Ch. 16 - Find Actual and Budget Amounts from Variances JW...Ch. 16 - Variance Computations with Missing Data The...Ch. 16 - Comprehensive Variance Problem Sweetwater Company...
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- Scattergraph method Using the data in P4-2 and a piece of graph paper: 1. Plot the data points on the graph and draw a line by visual inspection, indicating the trend shown by the data points. 2. Determine the variable cost per unit and the total fixed cost from the information on the graph. 3. Determine the variable cost to be charged to the product for the year. 4. Determine the fixed cost to be charged to factory overhead for the year. 5. Do these answers agree with the answers to P4-2? Why or why not?arrow_forwardIf variances are recorded in the accounts at the time the manufacturing costs are incurred, what does a debit balance in Direct Materials Price Variance represent?arrow_forwardFixed Overhead Spending and Volume Variances, Columnar and Formula Approaches Corey Company provided the following information: Required: 1. Using the columnar approach, calculate the fixed overhead spending and volume variances. 2. Using the formula approach, calculate the fixed overhead spending variance. 3. Using the formula approach, calculate the fixed overhead volume variance. 4. Calculate the total fixed overhead variance.arrow_forward
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