This Website Has Been Moved to a New Link


Loading

Stiller Cost Accounting

Price: $1.99


Stiller Company uses a standard cost accounting system. Some of the ledger
accounts have been destroyed in a fire. The controller asks your help in reconstructing
some missing entries and balances.
Instructions

Answer the following questions.
(a) Materials Price Variance shows a $2,000 unfavorable balance. Accounts Payable shows
$128,000 of raw materials purchases. What was the amount debited to Raw Materials
Inventory for raw materials purchased?

(b) Materials Quantity Variance shows a $3,000 favorable balance. Raw Materials Inventory
shows a zero balance. What was the amount debited to Work in Process Inventory
for direct materials used?

(c) Labor Price Variance shows a $1,500 favorable balance. Factory Labor shows a
debit of $140,000 for wages incurred. What was the amount credited to Factory
Wages Payable?

(d) Factory Labor shows a credit of $140,000 for direct labor used. Labor Quantity
Variance shows a $900 favorable balance. What was the amount debited to Work in
Process for direct labor used?

(e) Overhead applied to Work in Process totaled $165,000. If the total overhead variance
was $1,200 favorable, what was the amount of overhead costs debited to Manufacturing
Overhead?

No comments:

Post a Comment