Paquita€™s Pearls Company (PPC) is a manufacturer of knock-off jewellery. Paquita attends Fashion Week in New York City every September and February to gauge the latest fashion trends in jewellery. She then makes trendy jewellery at a fraction of the cost of those designers who participate in Fashion Week. This fall€™s biggest item is triple-stranded pearl necklaces. Because of her large volume, Paquita uses process costing to account for her production. In October, she had started some of the triple strands. She continued to work on those in November. Costs and output figures are as follows:

REQUIRED
1. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.
2. Compute the total standard costs of pearls transferred out in November and the total standard costs of the November 30 inventory of work in process.
3. Compute the total November variances for direct materials and conversion costs.

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Paquita's Pearls Company Process Costing for the Month Ended November 30, 2012 Direct Conversion Materials Costs Units $2.50 $62,500 Standard cost per unit Work in process, beginning inventory (November ) 25,000 Degree of completion of beginning work in process Started during October Completed and transferred out Work in process, ending entory November 30) 26,250 Degree of completion of ending work in process Actual total costs added during November $10.00 187,500 100% 100% 75% 126,250 125,000 100% 50% $327,500 S1,207,415