standard full and variable eost, journal entries This is a eontinuation of the Ralph's Job story in Chapter 6, problem 9. Here we tell the story in terms of standard costs. The overhead LLAs were speeified in the originaI problem. Underlying standards for the direet labor and direet material eosts are as follows:

direet labor hours direet material units job a 100 175 jobb 110 450 job e 300 490 Recall there was no beginning work-in-process inventory, and only jobs a and b were eompleted during the period. At the end of the period, job e is 50% eomplete as to labor, and 100% eomplete as to material. (So at this time its standard eost will be based on 150 direet labor hours and 490 material units.)

Though various skilllevels are present, eaeh with a slightly different wage rate, Ralph uses an "average" wage rate of $21 per direet labor hour for eosting purposes.

Similarly, an "average" material priee of $10 perunit of direet material is used. All other details remain as speeified in the original problem.

a] Suppose a standard, full eosting system is used. Direet labor and direet material standard eosts are speeified above. The two overhead LLAs are as speeified in the originaI problem. The normal volumes for the two overhead eategories are, respeetively, DL$ = 10,000 and DM$ = 10,000. Record these various events with journal entries. Use an aeeount titled "mise. credits" to reeord the eredits forwages payable, depreeiation, material s, and so on. Be eertain to identify the eost of eaeh job, the ending work-in-proeess inventory balanee, the "plug" to cost of goods soId that eloses the various temporary produet cost aecounts, and the total in the eost of goods soId aecount.

b] Repeat [a] for the ease where standard, variable eosting is used.

AppendixLO1