Big Sur Water Sports, Inc., manufactures fiberglass boards used for riding the waves at the beach. The Warleances ticdanal products are sold under the brand name Crazy Board. The standard cost for material and labor is $89.20 Entries; Missing Data per board. This includes 8 kilograms of direct materiala t a standard cost of $5.00 per kilogram and 6 (LO 3,6)

hours of direct labor at $8.20 per hour. The following data pertain to November:

~ Purchases of material: 50,000 kilograms for $248,000.

“Total actual labor costs: $301,490.

~ Actual hours of labor: 36,500 hours.

“. Direct-material quantity variance: $1,500 unfavorable.

Work-in-process inventory on November 1: none.

-. 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.

wis Required

a. Compute the following amounts. Indicate whether each variance is favorable or unfavorable.

(1) Direct-labor rate variance for ‘November.

(2) Direct-labor efficiency variance for November.

(3) Actual kilograms of material used in the production process during November.

(4) Actual price paid per kilogram of direct material in November.

(5) Total amounts of direct-material and direct-labor cost transferred to Finished-Goods Inventory during November. ier

(6) Total amount of direct-material and direct-labor cost in the balance of Work-in-Process |

Inventory at the end of November. 9

b. Prepare journal entries to record the following:

~ Purchasing raw material.

- Adding direct material to Work-in-Process Inventory.

Adding direct labor to Work-in-Process Inventory.

"Recording variances.