Waddell Productions Uses a Standard Cost System for All Manufacturing

question 9

Essay

Waddell Productions uses a standard cost system for all manufacturing transactions.For the month of June the following activities have taken place:

Required:
Record the necessary journal entries to:
1.Record the materials purchases assuming that materials rate variances are recorded at the time of purchase.
2.Record the materials placed into production.
3.Record the direct labour used in production.

---

Definitions:

Fair Market Value

The price at which property would sell on the open market between a willing buyer and a willing seller.

Noncumulative Nonparticipating

Refers to a type of preferred stock that does not allow for the accumulation of unpaid dividends if they are not declared by the board, nor does it participate in the extra profits of the company.

Cash Dividends

Payments made to shareholders out of a corporation's earnings in the form of cash.

Stable Earnings

Earnings that show little variability and predictability over a period, indicative of financial stability in a company.