Return to que LIhe tollowing intormation applies to the questions displayed below) Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of output. Annual budgeted fixed factory overhead costs are $250,000 and the budgeted varlable factory overhead cost rate is $4 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 20,000 units, which took 41,000 machine hours. Actual fixed factory overhead costs for the year amounted to $245,000, while the actual variable overhead cost per unit was $3.90 Brief Exercise 15-23 (Static) Provide an appropriate end-of-year closing entry... [LO 15-4] Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independe situations: (a) the net factory overhead cost variance is closed entirely to Cost of Goods Sold (CSG), and (b) the net factory overhead variance is allocated among WIP Inventory. Finished Goods Inventory, and CGS using the following percentages: 10%, 20%, and 70% respectively. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Return to que LIhe tollowing intormation applies to the questions displayed below) Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of output. Annual budgeted fixed factory overhead costs are $250,000 and the budgeted varlable factory overhead cost rate is $4 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 20,000 units, which took 41,000 machine hours. Actual fixed factory overhead costs for the year amounted to $245,000, while the actual variable overhead cost per unit was $3.90 Brief Exercise 15-23 (Static) Provide an appropriate end-of-year closing entry... [LO 15-4] Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independe situations: (a) the net factory overhead cost variance is closed entirely to Cost of Goods Sold (CSG), and (b) the net factory overhead variance is allocated among WIP Inventory. Finished Goods Inventory, and CGS using the following percentages: 10%, 20%, and 70% respectively. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
Related questions
Question
Please help me to solve this problem
![Return to question
LIhe tollowing intormation applies to the questions displayed below.
Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced.
Practical capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of
output. Annual budgeted fixed factory overhead costs are $250,000 and the budgeted variable factory overhead
cost rate is $4 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units
produced. Budgeted and actual output for the year was 20,000 units, which took 41,000 machine hours. Actual fixed
factory overhead costs for the year amounted to $245,000, while the actual variable overhead cost per unit was
$3.90.
Brief Exercise 15-23 (Static) Provide an appropriate end-of-year closing entry.. [LO 15-4]
Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independent
situations: (a) the net factory overhead cost variance is closed entirely to Cost of Goods Sold (CSG), and (b) the net factory overhead
variance is allocated among WIP Inventory. Finished Goods Inventory, and CGS using the following percentages: 10%. 20%, and 70%,
respectively. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
O Answer is not complete.
No
Transaction
General Journal
Debit
Credit
a
Cost of goods sold
43,000
Factory overhead
43,000
2
Work in process inventory
4,300 O
8.600 O
30,100 O
Finished goods inventory
Cost of goods sold
Factory overhead
43,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f552e99-7d0b-4b02-82fb-0db8f94aa610%2F37f345bf-69cb-4fe3-afca-f600e787f123%2F4cr01qg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Return to question
LIhe tollowing intormation applies to the questions displayed below.
Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced.
Practical capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of
output. Annual budgeted fixed factory overhead costs are $250,000 and the budgeted variable factory overhead
cost rate is $4 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units
produced. Budgeted and actual output for the year was 20,000 units, which took 41,000 machine hours. Actual fixed
factory overhead costs for the year amounted to $245,000, while the actual variable overhead cost per unit was
$3.90.
Brief Exercise 15-23 (Static) Provide an appropriate end-of-year closing entry.. [LO 15-4]
Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independent
situations: (a) the net factory overhead cost variance is closed entirely to Cost of Goods Sold (CSG), and (b) the net factory overhead
variance is allocated among WIP Inventory. Finished Goods Inventory, and CGS using the following percentages: 10%. 20%, and 70%,
respectively. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
O Answer is not complete.
No
Transaction
General Journal
Debit
Credit
a
Cost of goods sold
43,000
Factory overhead
43,000
2
Work in process inventory
4,300 O
8.600 O
30,100 O
Finished goods inventory
Cost of goods sold
Factory overhead
43,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning