Casper's Delight - Page 87

1)

Raw Material - Clay ($0.925x 30,000 lb)

28,500

Raw Material – Glaze ( $0.75 x 6000 lb)

4,500

Material Price Variance - Glaze

180

Material Price Variance - Clay

900

Accounts Payable & Accrued Expenses

32,280

(To record the purchase of clay and glaze)

2)

Work in Progress

31,487.50

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

261.25

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

131.25

Raw Material - Clay ($0.95x28900 lb)

27,455

Raw Material – Glaze ( $0.75x5900 lb)

4,425

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

3)

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

25,762.50

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

825

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

300

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

412.50

Accounts Payable & Accrued Expenses

27,300

(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

(To record the costs of goods sold for 1145 units shipped)

8)

Cost of Goods Sold

1,585.57

Material Price Variance - Clay

900

Variable Overhead Spending Variance

28

Material Quantity Variance - Clay

261.25

Material Quantity Variance – Glaze

131.25

Material Price Variance - Glaze

180

Labour Efficiency Variance -Molding

825

Labour Rate Variance - Molding

300

Labour Efficiency Variance - Glazing

412.50

Fixed Overhead Budget Variance

128

Fixed Overhead Volume Variance

168.30

Variable Overhead Efficiency Variance

107.27