DuRoss Company Produces Coats

question 112

Essay

DuRoss Company produces coats.The company uses a standard costing system and has set the following standards for materials and labor:
During the year DuRoss produced 55,000 coats.Actual fabric purchased was 460,000 yards at $5.75 per yard.There were no beginning or ending inventories of fabric.Actual direct labor was 120,000 hours at $19.25 per hour.

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Definitions:

Supplies Account

An account in the general ledger that records the amount spent on supplies that are used in the operation of a business.

General Journal

A ledger where all financial transactions of a business are initially recorded using double-entry bookkeeping.

Purchases Journal

A financial journal used to record all purchases of goods and services on credit.

Return Supplies

Returned goods or materials that were previously purchased, which can reduce the payable amount or be exchanged for credit.