Cost and production data for Gigante Products Inc. follow: During the month, 850 units were sold at
Question:
Cost and production data for Gigante Products Inc. follow:
During the month, 850 units were sold at $60 each
Note: Materials, labor, and overhead are added evenly throughout the process.
Required:
1. Make general journal entries to record the production of the units in both departments, the movement of the goods, and sale of the goods. Use the two-variance method for overhead variance analysis. (Hint: You must first compute equivalent units and the variances for materials, labor, and factory overhead.)
2. Determine the ending balance of Work in Process in each department.
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood