The normal capacity of Gray's Gofish, Inc. is 6,000 units of product, which takes 12,000 direct...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The normal capacity of Gray's Gofish, Inc. is 6,000 units of product, which takes 12,000 direct labor hours to complete. A standard finished unit of product requires four pounds of materials at an estimated cost of $4 per pound. The estimated cost of labor is $8 per hour. It is estimated that factory overhead for the month will be $18,000 ($6,000 of fixed costs and $12,000 of variable costs). Determine the standard unit cost: Materials $ Labor Factory overhead Total Per Unit $ 35.00 ==== During the month 4,500 units of product were actually produced. 17,500 pounds of materials were used at a cost of $4.15 per pound. 9,500 labor hours were worked at an average rate of $7.90 per hour. Total actual factory overhead incurred was $13,500. 4,400 units were sold for $40 each on credit. (Do calculations on pages 2 & 3.) Do the general journal entries below to: 1. Issue materials to production. 2. Charge labor cost to production. 3. Charge factory overhead to production. 4. Record the sales, including cost of goods sold using the perpetual method when the products are sold, The normal capacity of Gray's Gofish, Inc. is 6,000 units of product, which takes 12,000 direct labor hours to complete. A standard finished unit of product requires four pounds of materials at an estimated cost of $4 per pound. The estimated cost of labor is $8 per hour. It is estimated that factory overhead for the month will be $18,000 ($6,000 of fixed costs and $12,000 of variable costs). Determine the standard unit cost: Materials $ Labor Factory overhead Total Per Unit $ 35.00 ==== During the month 4,500 units of product were actually produced. 17,500 pounds of materials were used at a cost of $4.15 per pound. 9,500 labor hours were worked at an average rate of $7.90 per hour. Total actual factory overhead incurred was $13,500. 4,400 units were sold for $40 each on credit. (Do calculations on pages 2 & 3.) Do the general journal entries below to: 1. Issue materials to production. 2. Charge labor cost to production. 3. Charge factory overhead to production. 4. Record the sales, including cost of goods sold using the perpetual method when the products are sold,
Expert Answer:
Answer rating: 100% (QA)
1 Standard Materials Cost Standard materials cost per unit Quantity of materials per unit Standard c... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The normal capacity of Algonquin Adhesives Inc. is 40,000 direct labor hours and 20,000 units per month. A finished unit requires 6 lb of materials at an estimated cost of $2 per pound. The estimated...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The City of Portland Sanitation Department is responsible for the collection and disposal of all solid waste within the city limits. The city must collect and dispose of an average of 300 tons of...
-
A coil of wire 0.1 m long and having 15 turns carries a current of 1.0 A. (a) Compute the flux density if the coil is within a vacuum. (b) A bar of an iron-silicon alloy, the B-H behavior for which...
-
Zocco Corporation has an inventory conversion period of 75 days, an average collection period of 38 days, and a payables deferral period of 30 days. a. What is the length of the cash conversion cycle...
-
What are three major manufacturing considerations for companies doing business in the EU? Identify and describe each.
-
Explain why a taxpayer with higher income does not have as large of a behavioral response to an increase in the tax rate as a lower-income taxpayer.
-
I dont understand this. Last year [year 1], we decided to drop our highest-end Red model and only produce the Yellow and Green models, because the cost system indicated we were losing money on Red....
-
Ms. F is being converted from an IV antibiotic to PO Cefadroxil in preparation for her discharge home. Order: Cefadroxil 0.5 g PO bid. Supply: cefadroxil 500 mg tablets. How many tablet(s) will Ms. F...
-
The materials manager at Pine Valley Furniture Company maintains a list of suppliers for each of the material items purchased by the company from outside vendors. Table 4-7 shows the essential data...
-
Morty and Helen paid the following state and local taxes during 2023: $4,000 in income taxes $3,000 in sales taxes $5,000 in real estate taxes If they file a joint tax return, what will their state...
-
Wutang takes a regular salary from the business and an annual bonus depending on OTE's financial results and the cash available. His salary was $325,000 in 2020 and $300,000 in 2019. Any other cash...
-
In Sid's Surf Shop, there is a 10-foot-long surf board on legs with swimwear on it near the entrance to the department where surfing merchandise is sold. The surfboard attracts many customers into...
-
FARO Technologies, whose products include portable 3D measurement equipment, recently had 29 million shares outstanding trading at $25 a share. Suppose the company announces its intention to raise...
-
On 1/1/15 the ABC Company purchased a car for $10,000. They paid $2,000 cash and paid the remainder on account. Prepare the journal entry.
-
The figure shows objects A and B thrown from point O with the same initial velocity v _0 and then traveling in parabolic motion past points P and Q , respectively. A was thrown upward by with respect...
-
1 20-- 2 August 16 Sales Returns and Allowances 3 4 DATE 5 Accounts Receivable, F. E. Dixon Issued credit memo no. 131. ACCOUNT Accounts Receivable DATE 20- August 1 Balance 16 ITEM DESCRIPTION POST....
-
Explain five different cases of income exempt from tax with clear examples.
-
At what point does the curve have maximum curvature? What happens to the curvature as x ? y = e x
-
Find all points of intersection of the given curves. r = sin , r = 1 - sin
-
Find the derivative of the function using the definition of derivative. State the domain of the function and the domain of its derivative. f (x) mx + b
-
Mega Tech, Inc. designs and manufactures automotive components. For years, the company enjoyed a stable marketplace, a small but loyal group of customers, and a relatively predictable environment....
-
In 2003, the Department of Health and Human Services in Victoria, Australia, initiated a AU$323 million project to develop HealthSMART, an integrated IT system that would deliver resource management,...
-
Describe the features of a project. How do they differ from day-to-day processes within an organization?
Study smarter with the SolutionInn App