The company where David works produces skateboards locally but sells them globally for $60 each. David...
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The company where David works produces skateboards locally but sells them globally for $60 each. David is one of the production managers in a meeting to discuss preliminary results from the year just ended. Here is the information they had in front of them: Wood Wheels Direct labor Actual results: . . . Standard Quantity per Unit 2.50 feet 5.00 wheels 0.30 hours Standard Price $4.00 per foot $0.45 per wheel $15.00 per hour Quantity of wood purchased, 220,500 feet; quantity of wood used, 214.500 feet. Quantity of wheels purchased, 408,340 wheels; quantity of wheels used, 392.340 wheels. Actual cost of the wood, $4.30 per foot. Actual cost of the wheels, $0.50 per wheel. Quantity of DL hours used, 24.180 hours; actual cost of DL hours, $16.60 per hour. Actual units produced, 78,000 skateboards. Your Answer Correct Answer (Used) Complete a variance analysis for DM (both wood and wheels) and DL. determining the price and efficiency variances for each; be sure to specify the amount and sign of each variance. DM- Wood DM- Wheels DL $ $ $ 66,150 20/417 38,688 Price Variance Unfavorable Unfavorable Unfavorable Efficiency Varianci 78,000 1,053 11.700 Unfavorable Unfavorable Unfavorable (b) Create a T-account for each DM Inventory account and for WIP Inventory, assuming all started with zero balances. Given your variance analysis in part (a), record any new debits and/or credits to these two T accounts to reflect the DM and DL activity. DM Inventory-Wood DM Inventory-Wheels WIP Inventory Then, explain the ending balances for each DM Inventory account-what does each consist of in terms of DM quantity and price? (Round cost per unit to 2 decimal places, eg 15.25) The ending balance in DM Inventory-Wood consists of /foot. WIP Inventory The ending balance in DM Inventory-Wheels consists of /wheel. eTextbook and Media List of Accounts feet at cost of $ wheels at cost of $ The company where David works produces skateboards locally but sells them globally for $60 each. David is one of the production managers in a meeting to discuss preliminary results from the year just ended. Here is the information they had in front of them: Wood Wheels Direct labor Actual results: . . . Standard Quantity per Unit 2.50 feet 5.00 wheels 0.30 hours Standard Price $4.00 per foot $0.45 per wheel $15.00 per hour Quantity of wood purchased, 220,500 feet; quantity of wood used, 214.500 feet. Quantity of wheels purchased, 408,340 wheels; quantity of wheels used, 392.340 wheels. Actual cost of the wood, $4.30 per foot. Actual cost of the wheels, $0.50 per wheel. Quantity of DL hours used, 24.180 hours; actual cost of DL hours, $16.60 per hour. Actual units produced, 78,000 skateboards. Your Answer Correct Answer (Used) Complete a variance analysis for DM (both wood and wheels) and DL. determining the price and efficiency variances for each; be sure to specify the amount and sign of each variance. DM- Wood DM- Wheels DL $ $ $ 66,150 20/417 38,688 Price Variance Unfavorable Unfavorable Unfavorable Efficiency Varianci 78,000 1,053 11.700 Unfavorable Unfavorable Unfavorable (b) Create a T-account for each DM Inventory account and for WIP Inventory, assuming all started with zero balances. Given your variance analysis in part (a), record any new debits and/or credits to these two T accounts to reflect the DM and DL activity. DM Inventory-Wood DM Inventory-Wheels WIP Inventory Then, explain the ending balances for each DM Inventory account-what does each consist of in terms of DM quantity and price? (Round cost per unit to 2 decimal places, eg 15.25) The ending balance in DM Inventory-Wood consists of /foot. WIP Inventory The ending balance in DM Inventory-Wheels consists of /wheel. eTextbook and Media List of Accounts feet at cost of $ wheels at cost of $
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It seems you are working on a variance analysis question which involves calculating price and efficiency variances for direct materials wood and wheels and direct labor Additionally you have to prepar... View the full answer
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
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