Examlex

Solved

Lusher Corporation Manufactures One Product

question 54

Essay

Lusher 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 and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The standard cost card for the company's only product is as follows: Lusher 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 and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The standard cost card for the company's only product is as follows: The company calculated the following variances for the year: The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $134,750 and budgeted activity of 24,500 hours. During the year, the company completed the following transactions: a.Purchased 60,100 kilos of raw material at a price of $5.50 per kilo. b.Used 55,250 kilos of the raw material to produce 36,900 units of work in process. c.Assigned direct labor costs to work in process.The direct labor workers (who were paid in cash)worked 27,030 hours at an average cost of $23.20 per hour. d.Applied fixed overhead to the 36,900 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed.Actual fixed overhead costs for the year were $115,250.Of this total, $40,250 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $75,000 related to depreciation of manufacturing equipment. e.Transferred 36,900 units from work in process to finished goods. f.Sold for cash 39,700 units to customers at a price of $33.60 per unit. g.Completed and transferred the standard cost associated with the 39,700 units sold from finished goods to cost of goods sold. h.Paid $171,000 of selling and administrative expenses. i.Closed all standard cost variances to cost of goods sold. Required: 1.Record the above transactions in the worksheet that appears below.Because of the width of the worksheet, it is in two parts.In your text, these two parts would be joined side-by-side to make one very wide worksheet.The beginning balances have been provided for each of the accounts, including the Property, Plant, and Equipment (net)account which is abbreviated as PP&E (net). 2.Determine the ending balance (e.g., 12/31 balance)in each account. 3.Prepare an income statement for the year. The company calculated the following variances for the year: Lusher 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 and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The standard cost card for the company's only product is as follows: The company calculated the following variances for the year: The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $134,750 and budgeted activity of 24,500 hours. During the year, the company completed the following transactions: a.Purchased 60,100 kilos of raw material at a price of $5.50 per kilo. b.Used 55,250 kilos of the raw material to produce 36,900 units of work in process. c.Assigned direct labor costs to work in process.The direct labor workers (who were paid in cash)worked 27,030 hours at an average cost of $23.20 per hour. d.Applied fixed overhead to the 36,900 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed.Actual fixed overhead costs for the year were $115,250.Of this total, $40,250 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $75,000 related to depreciation of manufacturing equipment. e.Transferred 36,900 units from work in process to finished goods. f.Sold for cash 39,700 units to customers at a price of $33.60 per unit. g.Completed and transferred the standard cost associated with the 39,700 units sold from finished goods to cost of goods sold. h.Paid $171,000 of selling and administrative expenses. i.Closed all standard cost variances to cost of goods sold. Required: 1.Record the above transactions in the worksheet that appears below.Because of the width of the worksheet, it is in two parts.In your text, these two parts would be joined side-by-side to make one very wide worksheet.The beginning balances have been provided for each of the accounts, including the Property, Plant, and Equipment (net)account which is abbreviated as PP&E (net). 2.Determine the ending balance (e.g., 12/31 balance)in each account. 3.Prepare an income statement for the year.

The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $134,750 and budgeted activity of 24,500 hours.

During the year, the company completed the following transactions:
a.Purchased 60,100 kilos of raw material at a price of $5.50 per kilo.
b.Used 55,250 kilos of the raw material to produce 36,900 units of work in process.
c.Assigned direct labor costs to work in process.The direct labor workers (who were paid in cash)worked 27,030 hours at an average cost of $23.20 per hour.
d.Applied fixed overhead to the 36,900 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed.Actual fixed overhead costs for the year were $115,250.Of this total, $40,250 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $75,000 related to depreciation of manufacturing equipment.
e.Transferred 36,900 units from work in process to finished goods.
f.Sold for cash 39,700 units to customers at a price of $33.60 per unit.
g.Completed and transferred the standard cost associated with the 39,700 units sold from finished goods to cost of goods sold.
h.Paid $171,000 of selling and administrative expenses.
i.Closed all standard cost variances to cost of goods sold.

Required:
1.Record the above transactions in the worksheet that appears below.Because of the width of the worksheet, it is in two parts.In your text, these two parts would be joined side-by-side to make one very wide worksheet.The beginning balances have been provided for each of the accounts, including the Property, Plant, and Equipment (net)account which is abbreviated as PP&E (net). Lusher 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 and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The standard cost card for the company's only product is as follows: The company calculated the following variances for the year: The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $134,750 and budgeted activity of 24,500 hours. During the year, the company completed the following transactions: a.Purchased 60,100 kilos of raw material at a price of $5.50 per kilo. b.Used 55,250 kilos of the raw material to produce 36,900 units of work in process. c.Assigned direct labor costs to work in process.The direct labor workers (who were paid in cash)worked 27,030 hours at an average cost of $23.20 per hour. d.Applied fixed overhead to the 36,900 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed.Actual fixed overhead costs for the year were $115,250.Of this total, $40,250 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $75,000 related to depreciation of manufacturing equipment. e.Transferred 36,900 units from work in process to finished goods. f.Sold for cash 39,700 units to customers at a price of $33.60 per unit. g.Completed and transferred the standard cost associated with the 39,700 units sold from finished goods to cost of goods sold. h.Paid $171,000 of selling and administrative expenses. i.Closed all standard cost variances to cost of goods sold. Required: 1.Record the above transactions in the worksheet that appears below.Because of the width of the worksheet, it is in two parts.In your text, these two parts would be joined side-by-side to make one very wide worksheet.The beginning balances have been provided for each of the accounts, including the Property, Plant, and Equipment (net)account which is abbreviated as PP&E (net). 2.Determine the ending balance (e.g., 12/31 balance)in each account. 3.Prepare an income statement for the year. Lusher 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 and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The standard cost card for the company's only product is as follows: The company calculated the following variances for the year: The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $134,750 and budgeted activity of 24,500 hours. During the year, the company completed the following transactions: a.Purchased 60,100 kilos of raw material at a price of $5.50 per kilo. b.Used 55,250 kilos of the raw material to produce 36,900 units of work in process. c.Assigned direct labor costs to work in process.The direct labor workers (who were paid in cash)worked 27,030 hours at an average cost of $23.20 per hour. d.Applied fixed overhead to the 36,900 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed.Actual fixed overhead costs for the year were $115,250.Of this total, $40,250 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $75,000 related to depreciation of manufacturing equipment. e.Transferred 36,900 units from work in process to finished goods. f.Sold for cash 39,700 units to customers at a price of $33.60 per unit. g.Completed and transferred the standard cost associated with the 39,700 units sold from finished goods to cost of goods sold. h.Paid $171,000 of selling and administrative expenses. i.Closed all standard cost variances to cost of goods sold. Required: 1.Record the above transactions in the worksheet that appears below.Because of the width of the worksheet, it is in two parts.In your text, these two parts would be joined side-by-side to make one very wide worksheet.The beginning balances have been provided for each of the accounts, including the Property, Plant, and Equipment (net)account which is abbreviated as PP&E (net). 2.Determine the ending balance (e.g., 12/31 balance)in each account. 3.Prepare an income statement for the year.
2.Determine the ending balance (e.g., 12/31 balance)in each account.
3.Prepare an income statement for the year.

Definitions:

Suriname

A country located on the northeastern coast of South America, known for its diversity in cultures, languages, and ecological systems.

Informal Leaders

Individuals within a group or organization who, despite lacking official authority, influence and guide others through personal attributes and relationships.

Organization's Best Interests

Actions or decisions that are considered to benefit the overall well-being and success of an organization.

Rights and Privileges

Entitlements and advantages given to individuals based on law, social rules, or organizational policies.

Related Questions

Q5: Herriot Corporation manufactures one product.It does not

Q18: When recording the raw materials used in

Q39: The expected cash collections for May is

Q55: The fixed manufacturing overhead budget variance for

Q86: Sleeter Corporation makes one product and it

Q93: Sousa Corporation uses a standard cost system

Q102: Hykes Corporation's manufacturing overhead includes $4.40 per

Q123: The denominator activity level in direct labor-hours

Q131: Sobus Corporation manufactures one product.It does not

Q211: Mullee Corporation produces a single product and