(Solved) Fisher Manufacturing uses a standard cost system. Data on standard costs and actual costs are as ...

Fisher Manufacturing uses a standard cost system. Data on standard costs and actual costs are as follows:

Direct materials:   Standard   Actual
Direct materials units per unit of output   2.0   3.3
Sales price per unit of direct materials   $5.00   $4.80
Direct materials cost per unit   $10.00   $16.00
Number of units   3,000   3,000
Direct materials cost   $30,000   $48,000

Direct labor:   Standard   Actual
Hours per unit   0.5   0.4
Cost per hour   $18.00   $20.00
Labor cost per unit   $9.00   $8.00
Number of units   3,000   3,000
Direct labor cost   $27,000   $24,000

Variable overhead*   Standard   Actual
Hours per unit   0.5   0.4
Cost per hour   $30.00   $29.00
Variable overhead cost per unit   $15.00   $11.60
Number of units   3,000   3,000
Variable overhead cost   $45,000   $34,800
*allocated based on direct labor hours

Fixed overhead*   Standard   Actual
Hours per unit   0.5   0.4
Cost per hour   $10.00   $9.00
Fixed overhead cost per unit   $5.00   $3.60
Number of units   3,000   3,000
Fixed overhead cost   $15,000   $10,800
*allocated on the basis of direct labor hours

Give the journal entry to transfer the cost of units from Work-in-Process Inventory to Finished Goods Inventory.

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Fisher Manufacturing uses a standard cost system. Data on standard costs and actual costs are as ...

Horngren's Financial & Managerial Accounting, The Financial Chapters

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