Tovar Company uses a standard cost accounting system. Some of the ledger accounts have been destroyed in

Question:

Tovar Company uses a standard cost accounting system. Some of the ledger accounts have been destroyed in a fire. The controller asks for your help in reconstructing some missing entries and balances.
Instructions
(a) Materials Price Variance shows a $3,000 favourable balance. shows $148,000 of raw materials purchases. What was the amount debited to Raw Materials Inventory for raw materials purchased?
(b) Materials Quantity Variance shows a $3,000 unfavourable balance. Raw Materials Inventory shows a zero balance. What was the amount debited to Work in Process Inventory for direct materials used?
(c) Labour Price Variance shows a $1,800 unfavourable balance. Factory Labour shows a debit of $170,000 for wages incurred. What was the amount credited to Wages Payable?
(d) Factory Labour shows a credit of $170,000 for direct labour used. Labour Quantity Variance shows a $500 unfavour- able balance. What was the amount debited to Work in Process for direct labour used?
(e) Overhead applied to Workin Process totaled $198,000. If the total overhead variance was $1,200 unfavourable, what was the amount of overhead costs debited to Manufacturing Overhead?
(f) Overhead Budget Variance shows a debit balance of $2,700. What was the amount and type of balance (debit or credit) in Overhead Volume Variance?
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...