In all problems involving variances, use “F” and “U” to indicate favorable and unfavorab...

In all problems involving variances, use “F” and “U” to indicate favorable and unfavorable variances, respectively.

Journal entries; variance analysis; other analyses; review of chapter

Cost and production data for King-Size Products Inc. follow:

Note: Materials, labor, and overhead are added evenly throughout the process.

Required:

1. Make general journal entries to record all transactions and variances. Use the two-variance method for overhead variance analysis. (Hint: You must first compute equivalent units and the variances for materials, labor, and factory overhead.)

2. Prove the ending balances of Work in Process in both departments.

3. Prove that all costs have been accounted for. (Hint: Remember to include the variances in the “Costs accounted for” section.)