Standard Costs and Equivalent Units (CPA). The Longhorn Manufacturing Corporation produces only one product, Bevo, and accounts for the production of Bevo using a standard-cost system.

At the end of each year, Longhorn prorates all variances among the various inventories and cost of sales. Because Longhorn prices its inventories on the first-in, first-out basis and all the beginning inventories are used during the year, the variances which had been allocated to the ending inventories are immediately charged to cost of sales at the beginning of the following year.

This allows only the current year’s variances to be recorded in the variance accounts in any given year.

Following are the standards for the production of one unit of Bevo: 3 units of item A @ $1.00 per unit; 1 unit of item B @ $.50 per unit; 4 units of item C @ $.30 per unit; and 20 minutes of direct labor @ $4.50 per hour. Separate variance accounts are maintained for each type of raw material and for direct labor. Raw material purchases are recorded initially at standard. Manufacturing overhead is applied at $9.00 per actual direct labor hour and is not related to the standard-cost system. There was no overapplied or underapplied manufacturing overhead at December 31, 19_2.

After proration of the variances, the various inventories at December 31, 19_2, were priced as follows:

RAW MATERIAL NUMBER OF UNIT ITEM UNITS COST AMOUNT A 15,000 $1.10 $16,500 B 4,000 102 2,080 Cc 20,000 32 6,400

$24,980 WORK IN PROCESS 9,000 units of Bevo which were 100 percent complete as to items A and B, 50 percent complete as to item C, and 30 percent complete as to labor. The composition and valuation of the inventory follows:
ITEM AMOUNT A $28,600 Bry 4,940 C 6,240 Direct labor — 6175 $45,955 Overhead 11,700 $57,655 FINISHED GOODS 4,800 units of Bevo composed and valued as follows:
ITEM AMOUNT A $15,180 B 2,704 C 6,368 Direct labor 8,540 $32,792 Overhead 16,200 $48,992 Following is a schedule of raw materials purchased and direct labor incurred for the year ended December 31, 19_3. Unit cost of each item of raw material and direct-labor cost per hour remained constant throughout the year.
PURCHASES ACTUAL NUMBER OF UNIT ITEM UNITS OR HOURS PRICE AMOUNT A 290,000 $1.15 $333,500 B 101,000 55 55,550 Cc 367,000 GIO) 128,450 Direct labor 34,100 4.60 156,860 During the year ended December 31, 19-3, Longhorn sold 90,000 units of Bevo and had ending physical inventories as follows:
RAW MATERIALS NUMBER OF ITEM UNITS A 28,300 B 2,100 Cc 28,900 WORK IN PROCESS 7,500 units of Bevo which were 100 percent complete as to items A and B, 50 percent complete as to item C, and 20 percent complete as to labor, as follows:

NUMBER OF ITEM _ _ UNITS OR HOURS A 22,900 B 8,300 Cc 15,800 Direct labor 800 FINISHED GOODS 5,100 units of Bevo, as follows:
NUMBER OF ITEM UNITS OR HOURS A 15,600 B 6,300 C 21,700 Direct labor 2,050 There was no overapplied or underapplied manufacturing overhead at December 31, 19_3.
required Answer each of the following questions. Supporting computations should be prepared in good form.
1. What was the charge or credit to cost of sales at the beginning of 19_3 for the variances in the December 31, 19_2, inventories?
2. What was the total charge or credit to the three material price-variance accounts for items A, B, and C for the year ended December 31, 19_3?
3. What was the total charge or credit to the three material efficiency-variance accounts for items A, B, and C for the year ended December 31, 19_3?
4. What was the total charge or credit to the direct-labor price-variance account for the year ended December 31, 19_3?
5. What was the total charge or credit to the direct-labor efficiency-variance account for the year ended December 31, 19_3? l-01