Marlin Manufacturing uses a standard cost system.Data on standard costs and actual costs are as follows:
Direct materials: Direct materials units per unit of output Cost per unit of direct materials Direct materials cost per unit Number of units Direct materials cost Standard 2.0$5.00$10.003,000$30,000 Actual 3.3$4.80$16.003,000$48,000 Direct labor: Hours per unit Cost per hour Labor cost per unit Number of units Direct labor cost Standard 0.5$18.00$9.003,000$27,000 Actual 0.4$20.00$8.003,000$24,000 Variable overhead** Hours per unit Cost per hour Variable overhead cost per unit Number of units Variable overhead cost Standard 0.5$30.00$15,003,000$45,000 Actual 0.4$29.00$11.603,000$34,800 *allocated based on direct labor hours
Fixed overhead* Hours per unit Cost per hour Fixed overhead cost per unit Number of units Fixed overhead cost Standard 0.5$10.00$5.003,000$15,000 Actual 0.4$9.00$3.603,000$10,800 *allocated on the basis of direct labor hours
Give the journal entry to transfer the cost of units from Work-in-Process Inventory to Finished Goods Inventory.Omit explanation.
Definitions:
Total Costs
The sum of all expenses a company incurs to produce its goods or services, including fixed and variable costs.
Average Variable Costs
The total variable costs of production divided by the quantity of output produced.
Fixed Costs
Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance.