COSTACCT MIDTERM EXAM-2ND SEM

Problem no. 4

Problem no. 5 and 6

2.
Journal Entries, Three-Variance
Method. Canelli Products Co.
presents the following
data related to June production:
Item 100% Budget 80% Budget
Actual
Materials...............................................
.................. $ 30,000 $ 24,000 $
23,600
Labor....................................................
................... 60,000 48,000 52,500
Factory
overhead...............................................
..... 280,000 250,000 252,500
$ 370,000 $ 322,000 $
328,600
Item 100% Budget 80% Budget
Actual
Direct labor
hours...................................................
5,000 4,000 4,200
Labor
rate........................................................
........ -- -- $12.50
Materials
purchases..............................................
.. -- -- --
Production in
units..................................................
2,500 2,000 2,000
Required: Prepare the journal entries
to record the above data, including the
recording of
the actual and applied factory
overhead using a single factory
overhead control account
and using the three-variance method.
The company records the materials
price variance at
the time that materials are purchased.
The factory overhead is based on the
budget at
100%. (Hint: To obtain the overhead
variances, 7rst solve for the variable
overhead rate.
2.
Journal Entries, Three-Variance
Method. Canelli Products Co.
presents the following
data related to June production:
Item 100% Budget 80% Budget
Actual
Materials...............................................
.................. $ 30,000 $ 24,000 $
23,600
Labor....................................................
................... 60,000 48,000 52,500
Factory
overhead...............................................
..... 280,000 250,000 252,500
$ 370,000 $ 322,000 $
328,600
Item 100% Budget 80% Budget
Actual
Direct labor
hours...................................................
5,000 4,000 4,200
Labor
rate........................................................
........ -- -- $12.50
Materials
purchases..............................................
.. -- -- --
Production in
units..................................................
2,500 2,000 2,000
Required: Prepare the journal entries
to record the above data, including the
recording of
the actual and applied factory
overhead using a single factory
overhead control account
and using the three-variance method.
The company records the materials
price variance at
the time that materials are purchased.
The factory overhead is based on the
budget at
100%. (Hint: To obtain the overhead
variances, 7rst solve for the variable
overhead rate.
Prob: 8