Emerging Dock Company Manufactures Boat Docks on an Assembly Line

question 61

Short Answer

Emerging Dock Company manufactures boat docks on an assembly line.Its standard costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department and the Finishing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.
Data for the Assembly Department for May 2017 are:



Costs for May:


Which of the following journal entries records the total conversion costs variances of the Assembly Department,assuming that conversion costs are 15% higher than expected?

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Definitions:

Henry Fayol

An alternate spelling for Henri Fayol, renowned for pioneering theories on organizational structure and management.

Equity

The concept of fairness and justice within the context of finance, employment, and law, ensuring equal treatment for all.

Pioneering Contributors

Individuals who have made significant foundational contributions in their field of expertise.

Third World Countries

A term originally used to describe countries not aligned with NATO or the Communist Bloc, now often used to refer to developing or low-income countries.