Marvin Ltd

question 50

Essay

Marvin Ltd.uses an automated process in its manufacturing operations.On November 1, the company had 25,000 units in beginning work in process which were 80% complete with respect to conversion.During the month of November, it started 120,000 into production.On November 30, there were 20,000 units in process, which were 40% complete with respect to conversion.Direct materials are added at the beginning of the process, and no units are spoiled in production.The company has standard costs per unit as follows: direct materials $4.00; conversion costs $2.00.Actual costs for November: The beginning inventory had direct materials costs of $105,750 and conversion costs of $45,500.During the month, the company issued $510,000 of direct materials and incurred $203,400 of conversion costs.Required:
1.Prepare a journal entry to record the direct material placed into work-in-process.The direct materials variance, if there is one, is recorded when materials are placed into production.2.What is the end of month balance in the Work-in-Process Inventory account assuming that variances are closed to the Cost of Goods Sold account?

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Definitions:

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Established practices or behaviors that are accepted and expected within a specific culture or community.

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A school of jurisprudence that uses traditions as the model for future laws and behavior. Also called tradition or custom.

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A written law passed by a legislative body at the federal or state level, setting forth regulations, provisions, and penalties.

Common Law

A legal system based on custom and court rulings rather than written laws, primarily in English-speaking countries.