During 2020, The Chen Corporation had the following actual results: Finished Units: Units Completed and Sold...

  

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During 2020, The Chen Corporation had the following actual results: Finished Units: Units Completed and Sold Thing One 65,000 Thing Two 40,000 (Assume the sales price per unit was the same as the amount budgeted in your Operating Budget in the Chapter 6 Computer Problem) (Assume there were no units in beginning inventory of finished goods) (Assume that work-in-process was negligible) Material purchased: A 700,000 lbs. purchased at $9,030,000 B 490,000 lbs. purchased at 3,871,000 C 150,000 purchased at 1,012,500 (Assume there were no materials in beginning inventory) Material used: A 690,000 lbs. B 480,000 lbs. C 130,000 each Direct Labor: Thing One-Actual direct labor hours used 275,000 at $3,492,500 Thing Two-Actual direct labor hours used 210,000 at $3,769,500 Factory Overhead Actual Variable Factory Overhead- $3,267,500 Thing One Actual Variable Factory Overhead- $2,499,000 Thing Two Actual Fixed Factory Overhead - $4,173,000 The following relates to the standards set by Chen: Direct Materials and Direct Labor: The standard inputs allowed for Direct Materials and Direct Labor and the standard price per pound and Direct Labor Hour are the same as they were when preparing Chen Corporations Operating Budget in Chapter 6. Factory Overhead: Budgeted Fixed Cost $4,168,000. The denominator volume is based on the direct labor hours you computed in the Direct Labor Portion of the Operating Budget in Chapter 6. Total Standard Overhead cost per hour $20. (Includes variable and fixed). You will need t determine what portion of the $20 is fixed factory overhead cost and which portion of the $20 is variable factory overhead cost. This is discussed in the Fixed overhead and journal entries in Module 8. Record the journal entries for: a. The sale of Thing One and Thing Two. Use the sales prices that were given in the computer problem. b.The Cost of Goods Sold assuming all of the units completed were sold. During 2020, The Chen Corporation had the following actual results: Finished Units: Units Completed and Sold Thing One 65,000 Thing Two 40,000 (Assume the sales price per unit was the same as the amount budgeted in your Operating Budget in the Chapter 6 Computer Problem) (Assume there were no units in beginning inventory of finished goods) (Assume that work-in-process was negligible) Material purchased: A 700,000 lbs. purchased at $9,030,000 B 490,000 lbs. purchased at 3,871,000 C 150,000 purchased at 1,012,500 (Assume there were no materials in beginning inventory) Material used: A 690,000 lbs. B 480,000 lbs. C 130,000 each Direct Labor: Thing One-Actual direct labor hours used 275,000 at $3,492,500 Thing Two-Actual direct labor hours used 210,000 at $3,769,500 Factory Overhead Actual Variable Factory Overhead- $3,267,500 Thing One Actual Variable Factory Overhead- $2,499,000 Thing Two Actual Fixed Factory Overhead - $4,173,000 The following relates to the standards set by Chen: Direct Materials and Direct Labor: The standard inputs allowed for Direct Materials and Direct Labor and the standard price per pound and Direct Labor Hour are the same as they were when preparing Chen Corporations Operating Budget in Chapter 6. Factory Overhead: Budgeted Fixed Cost $4,168,000. The denominator volume is based on the direct labor hours you computed in the Direct Labor Portion of the Operating Budget in Chapter 6. Total Standard Overhead cost per hour $20. (Includes variable and fixed). You will need t determine what portion of the $20 is fixed factory overhead cost and which portion of the $20 is variable factory overhead cost. This is discussed in the Fixed overhead and journal entries in Module 8. Record the journal entries for: a. The sale of Thing One and Thing Two. Use the sales prices that were given in the computer problem. b.The Cost of Goods Sold assuming all of the units completed were sold.