Question

Best Company uses a standard cost system and reports the following information for 2018 BEE (Cack the icon to view the information) Best Company reported the following variances (Click the icon to view the variances) Best produced 1,000 units of finished product in 2018 Read the requirements Х Xated variance (Prepare a single compound journal entry) i Data Table - Data Table - X Requirements $ Standards 3 yards of cloth per unit at $1 20 per yard 2 direct labor hours per unit at $10 25 per hour Overhead allocated at $5.00 per direct labor hour Actual 2.400 yards of cloth were purchased at $1.25 per yard Employees worked 1.700 hours and were paid $9.75 per hour Actual variable overhead was $1.600 Actual fixed overhead was 56 300 Record the journal entries to record direct materials, direct labor, variable overhead, and fixed overhead, assuming all expenditures were on account and there were no beginning or ending balances in the inventory accounts (all materials purchased were used in production, and all goods produced were sold) Record the journal entries to record the transfer to Finished Goods Inventory and cost of Goods Sold (omit the journal entry for Sales Revenue). Adjust the Manufacturing Overhead account (Record debits first, then credits Select the explanation on the last line of the journal entry table) Direct materials cost vanance Direct materials efficiency variance Dit Direct labor cost variance om Direct labor efficiency variance Variable overhead cost variance Vanable overhead efficiency variance 120 U 720 F 850 F 3.075 F 1,300 U 1,300 F 200 u Fixed Overhead cost vanance Fixed overhead volume variance 2.300 F Print Done Print Done Print Done Choose from any list or enter any number in the input fields and then continue to the next question

Answer 1

Date	Accounts and Explanation	Debit	Credit
	Raw Materials Inventory ($1.20/yard × 2,400 yards)	2,880
	Direct Materials Cost Variance	120
	Accounts Payable ($1.25/yard × 2,400 yards)		3,000
	Purchased direct materials.
	Work-in-Process Inventory ($1.20/yard × 3 Yards*1,000 Units)	3,600
	Direct Materials Efficiency Variance		720
	Raw Materials Inventory ($1.20/yard × 2,400 yards)		2,880
	Used direct materials.
	Work-in-Process Inventory ($10.25/DLHr × 2 DLHr*1,000 Units)	20,500
	Direct Labor Cost Variance		850
	Direct Labor Efficiency Variance		3,075
	Wages Payable ($9.75/DLHr × 1,700 DLHr)		16,575
	Direct labor costs incurred.
	Manufacturing Overhead ($1,600 VOH + $6,300FOH)	7,900
	Various Accounts		7,900
	Manufacturing overhead costs incurred.
	Work-in-Process Inventory ($5/DLHr × 2,000 DLHr)	10,000
	Manufacturing Overhead		10,000
	Manufacturing overhead costs allocated.
	Finished Goods Inventory ($3,600 + $20,500 + $10,000)	34,100
	Work-in-Process Inventory		34,100
	Completed goods transferred.
	Cost of Goods Sold	34,100
	Finished Goods Inventory		34,100
	Cost of sales at standard cost.
	Manufacturing Overhead	2,100
	Variable Overhead Cost Variance	1,300
	Fixed Overhead Cost Variance	200
	Variable Overhead Efficiency Variance		1,300
	Fixed Overhead Volume Variance		2,300
	To adjust Manufacturing Overhead.