Biology Forums - Study Force

The following information has been gathered by the controller of Acme Industries.

Direct Materials

AQ × AP

AQ × SP

SQ × SP

$650,000

$680,000

$670,000

Direct Labor

AQ × AP

AQ × SP

SQ × SP

$635,000

$630,000

$637,000

Variable Overhead

Actual

AQ × SP

SQ × SP

$560,000

$557,000

$562,000

Fixed Overhead

Actual

Static Budget

SQ × SP

$780,000

$810,000

$815,000

Required:

Using standard costing, prepare the following journal entries.

a.	Purchase of direct materials on account

b.	Transfer of direct materials into production

c.	Recording of payroll

d.	Payment for variable overhead

e.	Application of variable overhead to work in process

f.	Recording of variable overhead variances

g.	Application of fixed overhead to work in process

h.	Payment of fixed overhead

i.	Recording of fixed overhead variances

Content hidden