Business
Business, 04.06.2020 13:58, Marcynandrew

Arena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company’s only product is as follows:Inputs Standard Quantityor Hours Standard Price or Rate Standard CostDirect materials 1.2 pounds $ 5.50 per pound $ 6.60Direct labor 0.90 hours $ 21.00 per hour 18.90Fixed manufacturing overhead 0.90 hours $ 4.50 per hour 4.05Total standard cost per unit $ 29.55The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $81,000 and budgeted activity of 18,000 hours. During the year, the company completed the following transactions:Purchased 35,400 pounds of raw material at a price of $4.60 per pound. Used 32,180 pounds of the raw material to produce 26,900 units of work in process. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 23,810 hours at an average cost of $20.60 per hour. Applied fixed overhead to the 26,900 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $67,800. Of this total, $3,800 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $64,000 related to depreciation of manufacturing equipment. Completed and transferred 26,900 units from work in process to finished goods. Sold (for cash) 27,100 units to customers at a price of $36.60 per unit. Transferred the standard cost associated with the 27,100 units sold from finished goods to cost of goods sold. Paid $149,000 of selling and administrative expenses. Closed all standard cost variances to cost of goods sold. The company calculated the following variances for the year:Materials price variance $ 31,860 FMaterials quantity variance $ 550 FLabor rate variance $ 9,524 FLabor efficiency variance $ 8,400 FFixed manufacturing overhead budget variance $ 13,200 FFixed manufacturing overhead volume variance $ 27,945 FTo answer the following questions, you will need to record transactions a through i in the worksheet below. This worksheet is similar to the worksheets in your text except that it has been split into two parts to fit on the page. PP&E (net) stands for Property, Plant, and Equipment net of depreciation. Cash Raw Materials Work in Process Finished Goods PP&E (net) = Materials Price Variance Materials Quantity Variance Labor Rate Variance Labor Efficiency Variance FOH Budget Variance FOH Volume Variance Retained Earnings 1/1 $1,200,000 $29,700 $0 $70,920 $505,400 = $0 $0 $0 $0 $0 $0 $1,806,020 a. = b. = c. = d. = e. = f. = g. = h. = i. = 12/31 = The ending balance in the PP&E (net) account will be closest to:A. $505,400B. $441,400C. $396,455D. $501,600

answer
Answers: 1

Other questions on the subject: Business

image
Business, 23.06.2019 00:10, bthomas78
Special order carson manufacturing, inc., sells a single product for $36 per unit. at an operating level of 8,000 units, variable costs are $18 per unit and fixed costs $10 per unit. carson has been offered a price of $20 per unit on a special order of 2,000 units by big mart discount stores, which would use its own brand name on the item. if carson accepts the order, material cost will be $3 less per unit than for regular production. however, special stamping equipment costing $4,000 would be needed to process the order; the equipment would then be discarded. assuming that volume remains within the relevant range, prepare an analysis of differential revenue and costs to determine whether carson should accept the special order. use a negative sign with answer to only indicate an income loss from special order; otherwise do not use negative signs with your answers.
Answers: 2
image
Business, 23.06.2019 03:00, vrw28
You are considering purchasing a company — assets, liabilities, warts, and all. you are aware that sometimes liabilities do not always show up on the balance sheet. discuss five examples of liabilities that may not be explicitly recognized on the balance sheet, making sure to explain why they are liabilities.
Answers: 1
image
Business, 23.06.2019 06:00, sarahnd6907
What are some questions to ask a clerk in the dispatch office?
Answers: 1
image
Business, 23.06.2019 14:30, zeinabelsiblini
Which is an example of a short-term investment
Answers: 2
Do you know the correct answer?
Arena Corporation manufactures one product. It does not maintain any beginning or ending Work in Pro...

Questions in other subjects:

Konu
Mathematics, 20.08.2019 11:30
Konu
History, 20.08.2019 11:30