Direct Material Price var | |||
Debit($) | Credit($) | ||
Account payable | 1656 | Cost of goods sold | 1656 |
Total | 1656 | Total | 1656 |
Direct Material Quantity var | |||
Debit($) | Credit($) | ||
Material Inventory | 576 | Cost of goods sold | 576 |
Total | 576 | Total | 576 |
Direct Labour rate var | |||
Debit($) | Credit($) | ||
Wages payable | 252 | Cost of goods sold | 252 |
Total | 252 | Total | 252 |
Direct Labour Efficency var | |||
Debit($) | Credit($) | ||
Wages payable | 1980 | Cost of goods sold | 1980 |
Total | 1980 | Total | 1980 |
Wages payable | |||
Debit($) | Credit($) | ||
Closing Bal | 9492 | Direct Labour Efficency var | 1980 |
Direct Labour rate var | 252 | ||
Work in process | 7260 | ||
Total | 9492 | Total | 9492 |
Account Payable | |||
Debit($) | Credit($) | ||
Material Inventory | 17664 | ||
Closing Bal | 19320 | Material Price var | 1656 |
Total | 19320 | Total | 19320 |
Work in process | |||
Debit($) | Credit($) | ||
Material Inventory | 15360 | ||
Wges payable | 7260 | Closing Bal | 22620 |
Total | 22620 | Total | 22620 |
Raw Material Inventory | |||
Debit($) | Credit($) | ||
Account payable | 17664 | Work in process | 15360 |
Closing Bal | 2304 | ||
Total | 17664 | Total | 17664 |
Cost of goods sold | |||
Debit($) | Credit($) | ||
Material price Var | 1,656 | ||
Material Quantity Var | 576 | ||
Labour Rate Var | 252 | ||
Labour Efficency Var | 1,980 | Closing Bal | 4464 |
Total | 4,464 | Total | 4464 |
Variance Analysis
Direct Material Price variance$/Kilogram | 0.35 | ||||
Standard Material Price$/Kilogram | 0.32 | ||||
Actual Material Purchased(Kilogram) | 55,200 | ||||
Material Price Variance | 1,656 | Unfavorable | |||
(Actual Price - Standard Price )*Actual Material Purchased | |||||
('0.35-0.32)*234000 | |||||
Material Quantity Variance | |||||
Actual cost incurred in Standard production= 12000 Unit | |||||
Direct Material Quantity = 4 Kg | |||||
Standard Quantity allowed for | |||||
Actual Output== Kg(12000*4) | 48,000 | A | |||
Actual Quantity Used=Kg | 49,800 | B | |||
Standard Price$ 0.32 / Kg | |||||
Material Quantity Variance | 576 | Unfavorable | |||
Actual Quantity Used=Kg | 49,800 | ||||
Standard Quantity allowed for | 48,000 | ||||
Actual Output== Kg | |||||
(49800-48000)*0.32 | 576 | ||||
Labour rate Variance | |||||
Actual Hr rate $ 9492/1680 hr | 5.65 | ||||
Standard rate | 5.5 | ||||
Actual Hrs worked= hr | 1680 | ||||
Labour rate Variance | 252 | Unfavorable | |||
(5.65-5.5)*1680 | |||||
Labour efficiency Variance | |||||
Actual cost incurred in Standard production= 12000 Unit | |||||
Standard Quantity =0.11 Hr | |||||
Standard hrs allowed for actual product | 1,320 | Hrs | |||
Actual Labour hrs worked | 1,680 | Hrs | |||
Standard rate $/ hr | 5.50 | ||||
(1680-1320)*5.5 | |||||
Labour efficiency Variance | 1,980 | Unfavorable |
Accounted JE | ||||
Details | Debit$ | Credit$ | ||
Price var | Raw material Inventory | 17,664 | ||
(55200*$0.32) | ||||
Material price Var | 1,656 | |||
Account payable | 19,320 | |||
(55200*$0.35) | ||||
Quantity Var | Work in process | 15360 | ||
48000*0.32 | ||||
Material Quantity Var | 576 | |||
Raw material Inventory | ||||
49800*0.32 | 15936 | |||
Labour rate & Efficieny | Work in process | 7260 | ||
Standard hrs allowed for actual product | ||||
(1320*5.50) | ||||
Rate Var | 252 | |||
Efficency Var | 1,980 | |||
Wages payable | ||||
1680*5.65 | 9,492 | |||
Final entry transfer to Fost of goods sold | ||||
Cost of goods sold | 4,464 | |||
Material price Var | 1,656 | |||
Material Quantity Var | 576 | |||
Labour Rate Var | 252 | |||
Labour Efficency Var | 1,980 |
Canandaigua Container Company manufactures recyclable soft-drink cans. A unit of production is a case of 12...
Canandaigua Container 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, 4 kilograms Quantity, 0.11 hour Price, $0.32 per Rate, $5.50 per hour vile kilogram Actual material purchases amounted to 55,200 kilograms at $0.350 per kilogram. Actual costs incurred in the production of 12,000 units were as follows: Direct labor: $9,492 for 1,680 hours $17,430...
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
Rate, $12.50 per hour
Price, $0.60 per kilogram
Actual material purchases amounted to 200,000 kilograms at $0.64
per kilogram. Actual costs incurred in the production of 40,000
units were as follows:
Direct labor:
$137,700 for 10,800 hours...
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
Rate, $12.50 per hour
Price, $0.60 per kilogram
Actual material purchases amounted to 200,000 kilograms at $0.64
per kilogram. Actual costs incurred in the production of 40,000
units were as follows:
Direct labor:
$137,700 for 10,800 hours...
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, 0.24 hour
Quantity, 3 kilograms
Rate, $12.00 per hour
Price, $0.58 per kilogram
Actual material purchases amounted to 159,600 kilograms at
$0.630 per kilogram. Actual costs incurred in the production of
38,000 units were as follows:
Direct labor:
$116,850 for 9,500 hours...
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: Quantity, 0.27 hour Rate, $13.50 per hour Direct Material: Quantity, 6 kilograms Price, $0.64 per kilogram Actual material purchases amounted to 290,400 kilograms at $0.660 per kilogram. Actual costs incurred in the production of 44,000 units were as follows: Direct labor: Direct material: $169,400 for 12,320 hours...
TIhe 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 Quantity, 0.25 hour Rate, $16 per hour Direct Material: Quantity, 4 kilograms Price, $0.80 per kilogram Actual material purchases amounted to 240,000 kilograms at $.81 per kilogram. Actual costs incurred in the production of 50,000 units were as...
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: Quantity, 0.20 hour Rate, $10.00 per hour Direct Material: Quantity, 5 kilograms Price, $0.50 per kilogram Actual material purchases amounted to 210,000 kilograms at $0.57 per kilogram. Actual costs incurred in the production of 30,000 units were as follows: Direct labor: Direct material: $ 72,450 for 6,900...
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
Rate, $12.50 per hour
Price, $0.60 per kilogram
Actual material purchases amounted to 200,000 kilograms at $0.64
per kilogram. Actual costs incurred in the production of 40,000
units were as follows:
Direct labor:
$137,700 for 10,800 hours...
Saskatawan Can Company manufactures recyclable soft drink cans. A unit of production is a case of 12 dozen Can The following standaris hanchen set by the paduction-engineering Maff and the controller. Exercise 10-22 Straightforward Computation of Variances (LO 10-1, 103) Direct laber Quantity. 25 hour Rale, Slo per hour Direct material: Quantity, 4 kilogrunts Price, S.80 per kilogram Actual material purchases amounted to 240.000 kilograms at 5.81 per kilogram. Actual costs incurred in the production of 50,000 units were as...
Exercise 10-23 Determination of Variances Using Diagrams (LO 10-3) 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: Quantity, 0.25 hour Rate, $16 per hour Direct Material: Quantity, 4 kilograms Price, $0.80 per kilogram Actual material purchases amounted to 240,000 kilograms at $0.81 per kilogram. Actual costs incurred in the production of 50,000 units were as...