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

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.

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2. Materials inventory ($5 x 50,000 kg.) $250,000 Materials purchase price variance (see (d) above) Accounts payable (plug) $750 $249,250 Purchase of 50,000 kilograms of materials for $249,250 ($4.985/kg.) $256,000 $1,500 Work-in-Process inventory (6,400 eq. units x S40) Materials usage variance (plug) Materials inventory (51,500 kg. x $5/kg.) $257,500 Issued 51,500 kilograms of material to produce 6,400 equivalent units. Work-in-Process Inventory (6,200 eq. units x $109.20/unit) $677,040 $64,300 $12,740 $600,000 Direct labor wages incurred to manufacture 6,200 equivalent units, actual wage rate - Labor rate variance (see 1b above) Labor efficiency variance (see 1a above) Accrued Payroll (given) $16.438/hr