Inputs. Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit Standard Quantity or...

Transcribed Image Text:

Inputs. Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit Standard Quantity or Hours Standard Price or Rate Standard Cost $ 12.75 15.05 1.7 gallons 0.70 hours $ 7.50 per gallon $ 21.50 per hour 0.70 hours $ 6.00 per hour $ 32.00 4.20 During the year, the company completed the following transactions: a. Purchased 52,900 gallons of raw material at a price of $7.60 per gallon. b. Used 46,820 gallons of the raw material to produce 27,600 units of work in process. Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation. Cash Raw Materials 1/1 $ 1,160,000 $ 45,900 Work in Process $ 0 Finished Goods $ 67,200 PP&E (net) = $ 757,400 = Materials Materials Price Variance $ 0 Labor FOH Quantity Labor Rate Efficiency Budget Variance Variance Variance Variance $ 0 $ 0 $ 0 $ 0 V a. b. = = When recording the raw materials purchases in transaction (a) above, the Cash account will increase (decrease) by: Inputs. Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit Standard Quantity or Hours Standard Price or Rate Standard Cost $ 12.75 15.05 1.7 gallons 0.70 hours $ 7.50 per gallon $ 21.50 per hour 0.70 hours $ 6.00 per hour $ 32.00 4.20 During the year, the company completed the following transactions: a. Purchased 52,900 gallons of raw material at a price of $7.60 per gallon. b. Used 46,820 gallons of the raw material to produce 27,600 units of work in process. Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation. Cash Raw Materials 1/1 $ 1,160,000 $ 45,900 Work in Process $ 0 Finished Goods $ 67,200 PP&E (net) = $ 757,400 = Materials Materials Price Variance $ 0 Labor FOH Quantity Labor Rate Efficiency Budget Variance Variance Variance Variance $ 0 $ 0 $ 0 $ 0 V a. b. = = When recording the raw materials purchases in transaction (a) above, the Cash account will increase (decrease) by: