Reference no: EM132470956
Work-in-process inventory on November 1
- Work-in-process inventory on November 30: 800 units (75 percent complete as to labor; material is issued at the beginning of processing).
- Units completed: 5,600 units.
- Purchases of materials: 50,000 kilograms for $249,250.
- Total actual labor costs: $300,760.
- Actual hours of labor: 36,500 hours.
- Direct-material quantity variance: $ 1,500 unfavorable.
Required:
Question 1 . Compute the following amounts. Indicate whether each variance is favorable or unfavorable.
a. Direct-labor rate variance for November.
b. Direct-labor efficiency variance for November._
C. Actual kilograms of material used in the production process during November.
d. Actual price paid per kilogram of direct material in November.
e. Total amounts of direct-material and direct-labor cost transferred to Finished-Goods Inventory during November.
f. The total amount of direct-material and direct-labor cost in the ending balance of Work-in-Process Inventory at the end of November.
Question 2. Prepare journal entries to record the following:
a. Purchase of raw material.
b. Adding direct material to Work-in-Process Inventory.
C. Adding direct labor to Work-in-Process Inventory.
d. Recording of variances.