Standard Cost in Process Costing; All Variances and Journal Entries Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (i.e., direct materials + direct labor) of its single product are
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Material
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8 kilograms x $5.00/kg
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$40.00
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Labor
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6 hours x $18.20/hr.
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$109.20
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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 percent complete as to labor
Units completed 5,600 Units
Budgeted output 6,000 Units
Purchases of materials 50,000 Kilograms
Total actual labor costs $600,000
Actual hours of labor 36,500 Hours
Materials usage variance $1,500 Unfavorable
Total materials variance $750 Unfavorable
Required
1. Compute for November:
a. The labor efficiency variance.
b. The labor rate variance.
c. The actual number of kilograms of material used in the production process during the month.
d. The actual price paid per kilogram of material during the month.
e. The total amounts of material and labor cost transferred to the finished goods account.
f. The total amount of material and labor cost in the work-in-process inventory account at the end of November.
2. Prepare journal entries to record all transactions including the variances in requirement 1.