Question

Maple Leaf Production manufactures truck tires. The following information is available for the last operating period.

• Maple Leaf produced and sold 93,000 tires for $48 each. Budgeted production was 100,000 tires.
• Standard variable costs per tire follow.

Direct materials: 4 pounds at $2.00	$	8.00
Direct labor: 0.50 hours at $17.50		8.75
Variable production overhead: 0.28 machine-hours at $15 per hour		4.20
Total variable costs	$	20.95

• Fixed production overhead costs:

Monthly budget $1,750,000

• Fixed overhead is applied at the rate of $17.50 per tire.
• Actual production costs:

Direct materials purchased and used: 387,000 pounds at $1.60	$	619,200
Direct labor: 42,500 hours at $17.80		756,500
Variable overhead: 27,000 machine-hours at $15.50 per hour		418,500
Fixed overhead		1,760,000

Required:
a. Prepare a cost variance analysis for each variable cost for Maple Leaf Productions.
b. Prepare a fixed overhead cost variance analysis.
c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to cost of goods sold at the end of the operating period.

Complete this question by entering your answers in the tabs below.

• Required A
• Required B
• Required C

(Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to cost of goods sold at the end of the operating period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No	Event	General Journal	Debit	Credit
A	1	Work-in-process inventory	744,000
		Materials efficiency variance	30,000
		Materials price variance		154,800
		Accounts payable		619,200
B	2	Work-in-process inventory	813,750
		Direct labor price variance	12,750
		Direct labor efficiency variance		70,000
		Wages payable		756,500
C	3	Work-in-process inventory	390,600
		Variable overhead (applied)		390,600
D	4	Variable overhead (actual)	418,500
		Miscellaneous payables and inventory accounts		418,500
E	5	Variable overhead (applied)	390,600
		Variable overhead price variance	13,500
		Variable overhead efficiency variance	14,400
		Variable overhead (actual)		418,500
F	6	Work-in-process inventory	1,627,500
		Fixed overhead (applied)		1,627,500
G	7	Fixed overhead (actual)	1,760,000
		Miscellaneous payables and inventory accounts		1,760,000
H	8	Fixed overhead (applied)	1,627,500
		Fixed overhead price variance	10,000
		Fixed overhead production volume variance
		Fixed overhead (actual)		1,760,000
I	9	Finished goods inventory	3,575,850
		Work-in-process inventory		3,575,850
J	10	Accounts receivable	4,464,000
		Sales revenue		4,464,000
K	11	Cost of goods sold	3,575,850
		Finished goods inventory		3,575,850
L	12	Materials price variance	154,800
		Direct labor efficiency variance	70,000
		Fixed overhead production volume variance	122,500
		Direct labor price variance		12,750
		Variable overhead price variance		13,500
		Variable overhead efficiency variance		14,400
		Fixed overhead price variance		10,000
		Cost of goods sold

** I need help calculating "cost of goods sold" for the journal entry.**

Answer 1

Materials price variance	154,800
Direct labor efficiency variance	70,000
Fixed overhead production volume variance	122,500
Direct labor price variance		12,750
Variable overhead price variance		13,500
Variable overhead efficiency variance		14,400
Fixed overhead price variance		10,000
Cost of goods sold (BALANCING FIGURE)		296,650
347300-50650 = 296650