Refer to the information in PA9-9 for Rip Tide. Rip Tide has the following actual results for
Question:
Refer to the information in PA9-9 for Rip Tide.
Rip Tide has the following actual results for the month of June:
Number of units produced and sold ......... 312
Number of square feet of fiberglass used ...... 4,920
Cost of fiberglass used ...............$27,552
Number of labor hours worked ........... 3,060
Direct labor cost ...............$47,736
Variable overhead cost .............$14,790
Fixed overhead cost .............$20,500
Required:
Prepare the journal entries to record the following for Rip Tide:
1. Direct materials costs and related variances. Assume the company purchases raw materials as needed and does not maintain any ending inventories.
2. Direct labor and relatedvariances.
Step by Step Answer:
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips