Barley Hopp, Inc journal entries
cybacatx (Not rated)
(Not rated)
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: |
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | |||||
| Direct materials (clay) | 2.1 | lbs. | $ | 1.20 | per lb. | $ | 2.52 |
| Direct labor | 2.2 | hrs. | $ | 11.00 | per hr. | 24.20 | |
| Variable manufacturing overhead (based on direct labor hours) | 2.2 | hrs. | $ | 1.40 | per hr. | 3.08 | |
| Fixed manufacturing overhead ($281,120 ÷ 112,000 units) | 2.51 | ||||||
| Barley Hopp had the following actual results last year: |
| Number of units produced and sold | 106,000 | |
| Number of pounds of clay used | 242,600 | |
| Cost of clay | $ | 266,860 |
| Number of labor hours worked | 213,200 | |
| Direct labor cost | $ | 2,792,920 |
| Variable overhead cost | $ | 405,080 |
| Fixed overhead cost | $ | 250,000 |
| Required: |
| 1., 2., & 3. | Prepare the journal entry to record the direct materials, direct labor, variable overhead costs and related variances for Barley Hopp. Assume the company purchases raw materials as needed and does not maintain any ending inventories. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) |
10 years ago
Barley Hopp, Inc
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1511109_1_journal.doc
