Format Of Entries Of Standard Costing-chap 20

Recording of material and its variances: Method No.1: 1 Raw material Material price variance Material price variance Account payable

Std. cost Unfav

2 Work in process Material quantity variance Material quantity variance Raw material

Std. cost Unfav

Debit Debit Fav Actual cost

Credit Credit

Debit Debit Fav Actual cost

Credit Credit

Debit Actual cost

Credit

Method No.2: 1 Raw material Account payable

Actual cost

2 Work in process Material price variance Material quantity variance Material quantity variance Material price variance Raw material

Std. cost Unfav Unfav

Debit Debit Debit Fav Fav Actual cost

Credit Credit Credit

Recording of Labour and its variances: Method No.1: 1 Payroll Accured payrol

Actual cost Actual cost

Debit Credit

2 Work in process Labor rate variance Labor hours variance Labor rate variance Labor hours variance Payroll

Std. cost unfav unfav Fav Fav Actual cost

Debit Debit Debit Credit Credit Credit

Recording of Factory overhead and its variances: Two Variance Method 1 Factory overhead control Various credits

Actual cost Actual cost

Debit

2 Work in process Factory overhead control

(Std. hours allowed x total FOH rate) (Std. hours allowed x total FOH rate)

3 FOH Controllable variance FOH Volume variance FOH Controllable variance FOH Volume variance Factory overhead control

unfav unfav Fav Fav

Credit

Debit Debit Credit Credit Credit

Note: The amount in FOH control account will be closed in entry no2 and 3 and at end there will no amount in FOH control account Three Variance Method 1 Factory overhead control Various credits

Actual cost Actual cost

Debit

2 Work in process FOH Efficiency variance FOH Efficiency variance Factory overhead control

(Std. hours allowed x total FOH rate) unfav fav (Actual hours x total FOH rate)

3 FOH Spending variance

unfav

Credit

Debit

FOH Idle capacity variance FOH Spending variance FOH Idle capacity variance Factory overhead control

unfav Debit fav fav (Bal. figure)

Credit Credit Credit

Note: The amount in FOH control account will be closed in entry no2 and 3 and at end there will no amount in FOH control account Four Variance Method 1 Factory overhead control Various credits

Actual cost Actual cost

Debit

2 Work in process FOH Fixed efficiency variance FOH Variable efficiency variance FOH Fixed efficiency variance FOH Variable variance Factory overhead control

(Std. hours allowed x total FOH rate) unfav unfav fav fav (Actual hours x total FOH rate)

3 FOH Spending variance FOH Idle capacity variance FOH Spending variance FOH Idle capacity variance Factory overhead control

unfav Debit unfav Debit fav fav (Bal. figure)

Credit

Credit Credit Credit

Note: The amount in FOH control account will be closed in entry no2 and 3 and at end there will no amount in FOH control account

Format of Entries of Material Mix and Material Yeild Variance 1 On purchase of material Raw material Material Price variance Material Price variance Account payable 2 To material charge to production

Std. cost unfav Fav Actual cost

Debit Debit Credit Credit

Work in process Material Mix variance Material Mix variance Raw material

Std. cost unfav Fav Actual cost

Debit Debit Credit Credit

3 To transfer material cost to finished goods Finished Goods Material Yeild Variance Material Yeild variance Work in process

Std. cost unfav Fav Actual cost

Debit Debit Credit Credit

Format of Entries of Labor Mix and Labor Yeild Variance 1 Set up Payroll account Payroll Accured payrol

Debit Credit

2 To transfer payroll to WIP Work in process Labor rate variance Labor hour variance Labor rate variance Labor hour variance Payroll

unfav unfav fav fav

Debit Debit Debit Credit Credit Credit Credit

3 To transfer labor cost to Finished goods Finished Goods Labor yeild variance Labor yeild variance Work in process

unfav fav

Debit Debit Credit Credit

Format of Entries of FOH 2 variance and FOH Yeild Variance

1 Factory overhead control Various credits

Actual cost Actual cost

Debit

2 Work in process Factory overhead control

(Std. hours allowed x total FOH rate) (Std. hours allowed x total FOH rate)

3 FOH Controllable variance FOH Volume variance FOH Controllable variance FOH Volume variance Factory overhead control

unfav unfav Fav Fav

Credit

Debit Debit Credit Credit Credit

4 To transfer to Finished Goods Finished goods FOH yeild variance FOH yeild variance Work in process

unfav Fav

Debit Debit Credit Credit

Debit Credit

nd 3 and at end there will be

Debit Debit Credit Credit

nd 3 and at end there will be

Debit Debit Credit Credit

nd 3 and at end there will be

Yeild Variance

ild Variance

Yeild Variance

Debit Credit