European Styles, Inc. manufactures women’s blouses of one quality, which are produced in lots to fill each special order. Its customers are department stores in various cities. European Styles sews the particular stores’ labels on the blouses, During November. the company worked on three orders, for which the month’s job-cost records disclose the following data.
lot Number | Boxes inlot | Material Used(yards) | Hours Worked |
22 | 1,000 | 24,100 | 2,980 |
23 | 1,700 | 40,440 | 5,130 |
24 | 1,200 | 28,825 | 2,390 |
The following additional information is available:
1. The firm purchased 95,000 yards of material during November at a cost of $106,400.
2. Direct labor during November amounted to $165,000, According to payroll records. Production employees were paid $15.00 per hour.
3. There was no work in process on November 1. During November, lots 22 and 23 were completed. All material was issued for lot 24, which was80 percent completed as to direct labor.
4. The standard costs for a box of six blouses are as follows:
Direct material | 24 yards at $1.10 per yard. | $26.40 |
Direct labor | 3hours at$14.70per hr. | 44.1 0 |
Manufacturing overhead | 3hours at $12.00 per hr. | $36.00 |
Standard cost per box |
| $106.50 |
Required:
1. Prepare a schedule computing the standard cost of lots 22, 23, and 24 for November.
2. Prepare a schedule showing. for each lot produced during November:
a. Direct-material price variance.
b. Direct-material quantity variance.
c. Direct-labor efficiency variance.
d. Direct-labor rate variance.
Indicate whether each variance is favorable or unfavorable.
3. Prepare journal entries to record each of the following events.
• Purchase of material.
• Incurrence of direct-labor cost.
• Addition of direct-material and direct-labor cost to Work-in-Process Inventory.
• Recording of direct-material and direct-labor variances.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.