Gb519 measurement and decision making

GB519 Measurement and Decision Making
Exercise 14-56 Page 629
Exercise 14-56
Boron Chemical Company produces a synthetic resin that is used in the automotive
industry. The company uses a standard cost system. For each gallon of output, the
following direct manufacturing costs are anticipated:
Direct labor:
2 hours
Direct Materials: 2 gallons

Connect with a professional writer in 5 simple steps

Please provide as many details about your writing struggle as possible

Academic level of your paper

Type of Paper

When is it due?

How many pages is this assigment?

$25/hr
$10/gal

=$50.00
=$20.00

During December of 2010, Boron produced a total of 2,500 gallons of output and
incurred the following direct manufacturing costs:
Direct labor:
4,900 hours worked @ an average wage rate of $19.50/hr
Direct Materials: Purchased: 6,000 [email protected] $10.45/gal
Used in production: 5,100 gallons
Boron recordes price variances for materials at the time of purchase
Required – give journal entries for the following events and transactions:
1. Purchase, on credit, of direct materials
Actual Cost
6,000 @ $10.45/gal
Standard Cost 6,000 @ $10.00/gal
6000 gallons @ $10 a gallon = $60,000
Price Variance
$2,700
Accounts Payable $62,700
Open account recording will state that direct materials = 6,000 gallons
at $10.00 per gallon wil equal $10.45
2. Direct materials issued to production.
Actual Cost
5,100 gallons
Standard Cost 5,000 gallons (2 per unit) @ $10.00/gallon
2,500 x 2 gallons x $10.00 per gallon = $50,000
Variance
$1,000
Materials $5,100 gallons x $10.00/gallon = $51,000
Materials cost is $20/unit for full production of the period at 2,500 units
3. Direct labor cost of units completed this period.
Actual Cost
4,900 hours @ $19.50/hr
Standard Cost 5,000 hours (2hrs/unit) @ $25.00/hr
2,500 x 2 hours x $25.00/hr = $125,000
Variance = $5.50/hr x 4,900 hours
= $26,950
Efficiency Variance = 100 hrs x $25.00/hr = $2,500
Wages (4,900 hrs x $19.50/hr
= $95,550
Direct Labor cost s ($50/unit) for the completed production (2,500 units)
and the actual labor costs during the period
4. Direct manufacturing cost (direct labor plus direct materials)
of units completed and transferred to Finished Goods Inventory
Actual Cost
2,500 units
Standard Cost 2,500 units @ $10×2+$25×2 = $70.00
Inventory
$70.00/unit x 2,000 units
= $175,000
Direct manufacturing costs are recorded using cost of goods
manufactured for the period.
5. Sale, for $150.00 per gallon, of 2,000 gallons of output (hint:
you will need two journal entries here)
Actual Cost
2000 gallons
Standard Cost 2000 gallons @ $70.00/unit
$70 x 2,000 units = $140,000
Inventory
= $140,000
Direct manufacturing cost of cost of good sold for the period.
Accounts Receivable = $150/unit x 2,000 units
= $300,000
Sales Revenue = $300,000
Sales revenue is recorded using accounts receivable.

Dana Revier
GB519 Measurement and Decision Making
Problem 15-58 Page 690
Problem 15-58
Four Variance Analysis
Able Control Company, which manufactures electrical switches, uses
a standard cost system and carries all inventory and standard cost.
The standard factory overhead cost per switch is based on direct
labor hours
Variable Overhead
5 hours
$8.00/hr
Fixed Overhead
5 hours
$12.00/hr
Total standard overhead cost per unit produced
$100.00
**based on practical capacity of 300,000 direct labor hours per month
The following information is for the month of October:
– The company produced 56,000 switches, although 60,000 switches
were scheduled to be produced
– The company worked 275,000 direct labor hours ata total cost of
$2,550,000
– Variable overhead costs were $2,340,000
– Fixed overhead costs were $3,750,000
The production manager argued during th elast performance review tha the company
should use more up-to-date base for charging factory overhead costs to production.
She commented that her factory had been highly automated in the last two years
and as a result now has hardly any direction labor. The factory hires only highly
skilled workers to set up productionruns and to do periodic adjustments of
machinery whenever the need arises
Required
1. Compute the following for Able Control Company:
a. The fixed overhead spending variance for October

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees

At 111papers.com, we value all our customers, and for that, always strive to ensure that we deliver the best top-quality content that we can. All the processes, from writing, formatting, editing, and submission is 100% original and detail-oriented. With us, you are, therefore, always guaranteed quality work by certified and experienced writing professionals. We take pride in the university homework help services that we provide our customers.

Money-Back Guarantee

As the best homework help service in the world, 111 Papers ensures that all customers are completely satisfied with the finished product before disbursing payment. You are not obligated to pay for the final product if you aren’t 100% satisfied with the paper. We also provide a money-back guarantee if you don’t feel that your paper was written to your satisfaction. This guarantee is totally transparent and follows all the terms and conditions set by the company.

Read more

Zero-Plagiarism Guarantee

All products that we deliver are guaranteed to be 100% original. We check for unoriginality on all orders delivered by our writers using the most advanced anti-plagiarism programs in the market. We, therefore, guarantee that all products that we submit to you are 100% original. We have a zero-tolerance policy for copied content. Thanks to our strict no plagiarized work rule, you can submit your homework to your professor without worrying.

Read more

Free-Revision Policy

TThis is one of the most cherished courtesy services that we provide to help ensure that our customers are completely satisfied with our finished products. Delivering the best final product to our customers takes multiple inputs. 111papers.com prides itself on delivering the best university homework help services in the writing industry. And, in part, our free revision policy is how we do it. What’s more, all our revisions are 100% free without any strings attached.

Read more

Privacy Policy

Client privacy is important to use. We know and understand just how important customers value their privacy and always want to safeguard their personal information. Thus, all the information that you share with us will always remain in safe custody. We will never disclose your personal information to any third party or sell your details to anyone. 111 Papers uses the most sophisticated, top-of-the-line security programs to ensure that our customers’ information is safe and secured.

Read more

Fair-Cooperation Guarantee

Placing your order with us means that you agree with the homework help service we provide. We, in turn, will endear to ensure that we do everything we can to deliver the most comprehensive finished product as per your requirements. We will also count on your cooperation to help us deliver on this mandate. Yes, we also need you to ensure that you have the highest-quality paper.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency