Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (i.e., direct materials and direct labor) of its single product are: Material (8 kilograms × $5.00 per kilogram) $ 40.00 Labor (6 hours × $18.20 per hour) 109.20 All materials are added at the beginning of processing. The following data were taken from the company’s records for November: In-process beginning inventory None In-process ending inventory 800 units, 75% complete as to direct labor Units completed 5,600 units Budgeted output 6,000 units Purchases of materials 50,000 kilograms Total actual direct labor costs $ 600,000 Actual direct labor hours 36,500 hours Materials usage variance $ 1,500 Unfavorable Total materials variance $ 750 Unfavorable Required: 1. Compute for November: d. The actual price paid per kilogram of material during the month, the company calculates the direct materials price variance at point of purchase. e. The amount of direct materials cost and direct labor cost transferred to the Finished Goods Inventory account. f. The total amount of direct materials cost and direct labor cost in the Work-in-Process Inventory account at the end of the month. 2. Prepare journal entries to record all transactions, including the variances in requirement 1.
Dash Company adopted a
Material | (8 kilograms × $5.00 per kilogram) | $ | 40.00 | |
Labor | (6 hours × $18.20 per hour) | 109.20 | ||
All materials are added at the beginning of processing. The following data were taken from the company’s records for November:
In-process beginning inventory | None | ||
In-process ending inventory | 800 | units, 75% complete as to direct labor | |
Units completed | 5,600 | units | |
Budgeted output | 6,000 | units | |
Purchases of materials | 50,000 | kilograms | |
Total actual direct labor costs | $ | 600,000 | |
Actual direct labor hours | 36,500 | hours | |
Materials usage variance | $ | 1,500 | Unfavorable |
Total materials variance | $ | 750 | Unfavorable |
Required:
1. Compute for November:
d. The actual price paid per kilogram of material during the month, the company calculates the direct materials price variance at point of purchase.
e. The amount of direct materials cost and direct labor cost transferred to the Finished Goods Inventory account.
f. The total amount of direct materials cost and direct labor cost in the Work-in-Process Inventory account at the end of the month.
2. Prepare
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