Example 1 on single plan method Solution Solution

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Example 1 on single plan method Solution

Example 1 on single plan method Solution

Solution EX. 1 Journal entries for direct material 1 - Dir. material inventory control

Solution EX. 1 Journal entries for direct material 1 - Dir. material inventory control -----2, 450, 000 Acc. payable---------------2, 400, 000 Mat. price variance ----------- 50, 000 __________________ 2 - WIP Control-------------2, 500, 000 Dir. material inventory control --------2, 450, 000 Mat. Quantity variance ----------- 50, 000 __________________ Journal entries for direct labor Wages and salary Control-----------2, 600, 000 Acc. payable---------------2, 600, 000 ________________________ 3 - WIP Control-------------2, 500, 000 Rate variance --------------75, 000 Efficiency variance -----------25, 000 Wages and salary Control-----------2, 600, 000 ___________________

Solution EX. 1 Journal entries for F O H 4 - F O H

Solution EX. 1 Journal entries for F O H 4 - F O H Control------ 3, 000 Other expenses----3, 000 __________ 5 - WIP Control-----2, 800, 000 Applied F O H-----2, 800, 000 __________

Solution EX. 1 6 - Applied F O H-----2, 800, 000 Controllable variance---125, 000

Solution EX. 1 6 - Applied F O H-----2, 800, 000 Controllable variance---125, 000 Volume variance-----75, 000 F O H Control------ 3, 000 _____________ 2, 500, 000+ 2, 800, 000= 7, 800, 000 * 90% = 7, 020, 000 7 - Finished goods control ------ 7, 020, 000 WIP control ---------- 7, 020, 000 _______________

Solution EX. 1 8 - Cost of goods sold------ 7, 020, 000 Finished goods

Solution EX. 1 8 - Cost of goods sold------ 7, 020, 000 Finished goods control ------ 7, 020, 000 ________________ 9 - profit & loss A/C ---- 7, 020, 000 Cost of goods sold------ 7, 020, 000 ________________ 10 - Cash or Acc. Rec-------9, 000 Sales -----------9, 000 _______________

Solution EX. 1 11 - Sales -----------9, 000 prof. & loss A/C ------ 9,

Solution EX. 1 11 - Sales -----------9, 000 prof. & loss A/C ------ 9, 000 _______________ 12. marketing & management account exp. ----250, 000 Cash-----------------------250, 000 _________________________ 13 -prof. & loss A/C ------ 250, 000 marketing & management account exp. ----250, 000 __________________

Solution EX. 1 14 - Mat. price variance ------- 50, 000 Mat. Quantity variance

Solution EX. 1 14 - Mat. price variance ------- 50, 000 Mat. Quantity variance ---- 50, 000 profit & loss A/C ---------200, 000 Rate variance --------------75, 000 Efficiency variance -----------25, 000 Controllable variance---------125, 000 Volume variance------------75, 000 __________________