60.1K

Verified Solution

Link Copied!

Q1 Required 1, Q2 A,B,C. drop down is the same for a, b c to select from the list.

Chemical Incorporated. has set the following standards for direct materials and direct labor for each 20-pound bag of Weed-Be-Doom: Direct materials: 25 pounds XF-2000 @ $0.10/pound Direct labor: 0.07 hour @ $30/hour Per Bag $ 2.50 2.10 The firm manufactured 100,000 bags of Weed-Be-Doom in December and used 2,700,000 pounds of XF-2000 and 7,250 direct labor hours. During the month, the firm purchased 3,000,000 pounds of XF-2000 at $0.085 per pound and incurred a total payroll of $253,750 for direct labor. The firm records purchases at standard cost and therefore recognizes the direct materials price variance at point of purchase. Required: 1. Compute the price and usage variances for direct materials and the rate and efficiency variances for direct labor. 2. Prepare journal entries to record the preceding events. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price and usage variances for direct materials and the rate and efficiency variances for direct labor. Direct materials: Purchase-price variance Usage variance Direct labor: Rate variance Efficiency variance Required 1 Required 2 Prepare journal entries to record the preceding events. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Purchased 3,000,000 pounds of XF-2000 at $0.085 per pound. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 No journal entry required Accounts payable Accrued payroll Record entry Cost of goods sold View general journal Required 1 Required 2 IT Prepare journal entries to record the preceding events. (If no entry is required for a transaction/event, select in the first account field.) View transaction list Journal entry worksheet Issued 2,700,000 pounds of XF-2000 for the production of 100,000 bags of Weed-Be-Doom. Note: Enter debits before credits. General Journal Debit Credit Transaction 2 COST Oi yoous solu Depreciation Finished goods inventory Fixed costs Fixed overhead Record entry Insurance View general journal Required 1 Required 2 Prepare journal entries to record the preceding events. (If no entry is required for a transaction/event in the first account field.) View transaction list Journal entry worksheet Direct labor wages for the manufacturing of 100,000 bags of Weed-Be-Doom for 7,250 hours. Note: Enter debits before credits. General Journal Debit Credit Transaction 3 mm Labor efficiency variance Labor rate variance Manufacturing Materials inventory Materials purchase-price variance Record entry View general journal Materials licae varianca Journal entry worksheet Direct labor wages for the manufacturing of 100,000 bags of Weed-Be-Doom for 7,250 hours. Note: Enter debits before credits. General Journal Debit Credit Transaction 3 Selling and Admin Variable costs Variable overhead Wages payable Work-in-process inventory Record entry View general journal

Answer & Explanation Solved by verified expert

See Answer