equired information

Case 10-49 Direct-Material and Direct-Labor Variances; Job-Order Costing; Journal Entries (Appendix) (LO 10-1, 10-3, 10-6, 10-9)

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[The following information applies to the questions displayed below.] European Styles, Inc., manufactures womens blouses of one quality, which are produced in lots to fill each special order. Its customers are department stores in various cities. European Styles sews the particular stores labels on the blouses. During November, the company worked on three orders, for which the months job-cost records disclose the following data.

Lot Number	Boxes in Lot			Material Used (yards)			Hours Worked
22		900			23,530			2,650
23		1,600			41,260			4,830
24		1,100			28,615			2,350

The following additional information is available:

1. The firm purchased 94,000 yards of material during November at a cost of $113,500.
2. Direct labor during November amounted to $117,960. According to payroll records, production employees were paid $12.00 per hour.
3. There was no work in process on November 1. During November, lots 22 and 23 were completed. All material was issued for lot 24, which was 70 percent completed as to direct labor.
4. The standard costs for a box of six blouses are as follows:

Direct material	26	yards at	$	1.20	per yard	$	31.20
Direct labor	3	hours at	$	11.40	per hr.		34.20
Production overhead	3	hours at	$	10.00	per hr.		30.00
Standard cost per box						$	95.40

Case 10-49 Part 3

3. Prepare journal entries to record each of the following events. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar amount.)

• 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.