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Homework answers / question archive / Stiller Company uses a standard cost accounting system
Stiller Company uses a standard cost accounting system. Some of the ledger accounts have been destroyed in a fi re. The controller asks your help in reconstructing some missing entries and balances.
Instructions
Answer the following questions.
(a) Materials Price Variance shows a $2,000 unfavorable balance. Accounts Payable shows $128,000 of raw materials purchases. What was the amount debited to Raw Materials Inventory for raw materials purchased?
(b) Materials Quantity Variance shows a $3,000 favorable balance. Raw Materials Inventory shows a zero balance. What was the amount debited to Work in Process Inventory for direct materials used?
(c) Labor Price Variance shows a $1,500 favorable balance. Factory Labor shows a debit of $140,000 for wages incurred. What was the amount credited to Factory Wages Payable?
(d) Factory Labor shows a credit of $140,000 for direct labor used. Labor Quantity Variance shows a $900 favorable balance. What was the amount debited to Work in Process for direct labor used?
(e) Overhead applied to Work in Process totaled $165,000. If the total overhead variance was $1,200 favorable, what was the amount of overhead costs debited to Manufacturing Overhead?
(a) $126,000 ($128,000 – $2,000).
(b) $129,000 ($126,000 + $3,000).
(c) $138,500 ($140,000 – $1,500).
(d) $140,900 ($140,000 + $900).
(e) $163,800 ($165,000 – $1,200).
please see the attached file for the complete solution.
