Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

European Styles, Incorporated, manufactures women s blouses of one quality, which are produced in lots to fill each special order. Its customers are department stores

European Styles, Incorporated, 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
221,30026,1705,160
232,00039,4908,050
241,50030,0854,810
The following additional information is available:
The firm purchased 98,000 yards of material during November at a cost of $101,500.
Direct labor during November amounted to $342,380. According to payroll records, production employees were paid $19.00 per hour.
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 80 percent completed as to direct labor.
The standard costs for a box of six blouses are as follows:
Direct material 20 yards at $ 1.00 per yard $ 20.00
Direct labor 4 hours at $ 18.70 per hour 74.80
Production overhead 4 hours at $ 14.00 per hour 56.00
Standard cost per box $ 150.80
Required:
1. Prepare a schedule computing the standard cost of lots 22,23, and 24 for November.
Note: Round "Standard Cost per Box" to 2 decimal places.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management Accounting And Control

Authors: Don R. Hansen, Maryanne M. Mowen

3rd Edition

0324002327, 978-0324002324

More Books

Students also viewed these Accounting questions

Question

How are most students funded?

Answered: 1 week ago

Question

Create a Fishbone diagram with the problem being coal "mine safety

Answered: 1 week ago