Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials are purchased,
Fantastic news! We've Found the answer you've been seeking!
Question:
Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials are purchased, and prorates all variances at yearend. Variances associated with direct materials are prorated based on the balances of direct materials in the appropriate accounts, and variances associated with direct labor and manufacturing overhead are prorated to Finished Goods Inventory and to Cost of Goods Sold CGS on the basis of the relative direct labor cost in these accounts at yearend. The following information is for the year ended December : The company had no beginning inventories and no ending WorkinProcess WIP Inventory. It applies manufacturing overhead at of standard direct labor cost. Finished goods inventory at : Direct materials $ Direct labor Applied manufacturing overhead Direct materials inventory at Cost of goods sold for the year ended : Direct materials $ Direct labor Applied manufacturing overhead Direct materials price variance unfavorable Direct materials usage variance favorable Direct labor rate variance unfavorable Direct labor efficiency variance favorable Actual manufacturing overhead incurred Required: Compute the amount of Direct Materials Price Variance to be prorated to Finished Goods Inventory at December Compute the total amount of direct materials cost in the Finished Goods Inventory at December after all materials variances have been prorated. Compute the total amount of direct labor cost in the Finished Goods Inventory at December after all variances have been prorated. Compute the total Cost of Goods Sold CGS for the year ended December after all variances have been prorated. For all requirements, round your intermediate calculations and final answers to the nearest whole dollar amount. Direct materials price variance Direct materials cost Direct labor cost Cost of goods sold
Posted Date: