Casper's Delight - Page 86

1)

Raw Material - Clay ($0.92 x 30,000 lb)

27,600

Raw Material – Glaze ( $0.78 x 6000 lb)

4,680

Accounts Payable & Accrued Expenses

32,280

(To record the purchase of clay and glaze)

2)

Work in Progress

31,487.50

Raw Material - Clay ($0.95x25lbx1145 toilets)

27,193.75

Raw Material – Glaze ( $0.75x5lbx1145 toilets)

4,293.75

(To record the transfer of clay and glaze into production WIP)

3)

Work in Progress [($15x1 hrx1145 toilets)+($15x.5hrx1145 toilets)]

25,762.50

Accounts Payable & Accrued Expenses

25,762.50

(To record labour expenses as part of WIP inventory)

4)

Manufacturing Overhead Assigned

6,100

Accounts Payable & Accrued Expenses

6,100

(To record the assignment of manufacturing overhead to the product line)

5)

Work in Progress ($5 x 1145 toilets)

5,725

Manufacturing Overhead Assigned

5,725

(To record the absorption of manufacturing overhead into WIP inventory)

6)

Finished Goods

62,975

Work in Process

62,975

(To record the transfer of 1145 units from WIP to Finished Goods)

7)

Costs of Goods Sold

62,975

Finished Goods

62,975

8)

Material Quantity Variance* (275 lbs U at $0.95/lb)

261.25

Raw Material – Clay

261.25

Material Quantity Variance* (175 lbs U at $0.75/lb)

131.25

Raw Material – Glaze

131.25

Raw Material – Clay

900

Material Price Variance*

900

Material Price Variance*

180

Raw Material – Glaze

180

Labour Efficiency Variance* (55 hrs U at $15/hr) -Molding

825

Labour Rate Variance* (1,200 hrs at $0.25/hr U )

300

Account Payable and Accrued Expense

1125

Labour Efficiency Variance* (27.5 hrs U at $15/hr)

412.50

Account Payable and Accrued Expense

412.50

Fixed Overhead Budget Variance*

128

Fixed Overhead Volume Variance*

168.30

Variable Overhead Efficiency Variance*

107.27

Variable Overhead Spending Variance*

28

Manufacturing Overhead Assigned

375.57