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Homework answers / question archive / Vista Company installed a standard cost system on January 1
Vista Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows.
1. Purchased 18,000 units of raw materials on account at a cost of $4.50 per unit. Standard cost was $4.40 per unit.
2. Issued 18,000 units of raw materials for jobs that required 17,500 standard units of raw materials.
3. Incurred 15,300 actual hours of direct labor at an actual rate of $5.00 per hour. The standard rate is $5.50 per hour. (Credit Factory Wages Payable.)
4. Performed 15,300 hours of direct labor on jobs when standard hours were 15,400.
5. Applied overhead to jobs at the rate of 100% of direct labor cost for standard hours allowed.
Instructions
Journalize the January transactions.
1. Raw Materials Inventory (18,000 X $4.40)........................................... 79,200
Materials Price Variance (18,000 X $.10).............................................. 1,800
Accounts Payable (18,000 X $4.50)............................................ 81,000
2. Work in Process Inventory (17,500 X $4.40)........................................ 77,000
Materials Quantity Variance (500 X $4.40).......................................... 2,200
Raw Materials Inventory (18,000 X $4.40)................................. 79,200
3. Factory Labor (15,300 X $5.50)............................................................ 84,150
Labor Price Variance (15,300 X $.50)......................................... 7,650
Factory Wages Payable (15,300 X $5.00)................................... 76,500
4. Work in Process Inventory (15,400 X $5.50)........................................ 84,700
Labor Quantity Variance (100 X $5.50)...................................... 550
Factory Labor (15,300 X $5.50).................................................. 84,150
5. Work in Process Inventory ($84,700 X 100%)...................................... 84,700
please see the attached file for the complete soution.
