Metro Classic Fashions, Inc., manufactures inexpensive men’s dress shirts, which are produced in lotsto Case 16.47*

fill each special order. Its customers are department stores in various cities. Metro Classic Fashions sews _ Direct-Material and Directthe particular store’s labels on the shirts. Labor Variances; Job-Order The following information is available: Costing; Journal Entries 1. The firm purchased 95,000 yards of material during June at a cost of $109,250. (LO3;6)

Direct labor during June amounted to $163,900. According to payroll records, production employees were paid $14.90 per hour.

3. There was no work in process on June 1. During June, lots A43 and A44 were completed. All material was issued for lot A45, which was 80 percent completed as to labor.

4. The standard costs for a box of six shirts are as follows:

Directimatenialknccanmucsa wucnsncats.. DENEVE EME STENO Go ssc bonnoaes srtonoerconsetes ee $ 26.40 DifectlabOtrrrd con rac ete stiey SHMOUMS tats 47, Ole rete nnessntesveneneaey. 44.10 Manufacturing Overhead ...... cere SHMOULSrao lO Oe knecoe uncsan whos 36.00 SVE TANG Feel (COS DEI ISON wee goo soucconason stashed anac eGo onenbescd’ SSBC aaa one eee Up haOR anne ane rR SCRE Pare eReD $106.50 During June, the company worked on three orders for which the month’s job-cost records disclose the following data.
Lot Number Boxes in Lot Material Used (yards) Hours Worked AVAG B ie hope eran ancient WOOO eae cc recur srenencettees DAR OOM rcetae screenees 2,980 Page estasdetosvee eraetnee s UR OO e snceease vegrertyscees-neee 4O4A0 LSeeEe tceer anete 5,130 RAG yeeate ccrmrescttcant 0 00) a scl da 2858250. Mii cen smenie er 2,890 Required

a. Prepare a schedule computing the standard cost of lots A43, A44, and A45 for June.

b. For each lot produced during June, prepare a schedule showing the following:
(1) Direct-material price variance.
(2) Direct-material quantity variance.
(3) Direct-labor efficiency variance.
(4) Direct-labor rate variance.
Indicate whether each variance is favorable or unfavorable.

c. Prepare journal entries to record each of the following events:
Purchase of material.
~ Incurrence of direct-labor cost.
Addition of direct-material and direct-labor cost to Work-in-Process Inventory.
Recording of direct-material and direct-labor variances.