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Decena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows: During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 15,830 hours at an average cost of $18.50 per hour. The company calculated the following direct labor variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.
When recording the direct labor costs, the Work in Process inventory account will increase (decrease) by:
School Years
The period of a person's life spent in education, typically from kindergarten through to the completion of secondary education.
Manipulate
To control or influence something or someone in a deceitful way, often to one's own advantage.
Insensitive
Showing a lack of awareness or regard for the feelings, circumstances, or needs of others; often resulting in actions or words that can cause offense or hurt.
Silly
Exhibiting a lack of wisdom or judgment; foolish or nonsensical behavior often aimed at provoking laughter.
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