George has set up a jewelry production company. The company specialized in making diamond rings. Last year he engaged a public accounting firm that completed a financial audit. The auditor recommended that George should set up a process cost-accounting system to better forecast and control expenses. He has done this; however, he is not happy with the results. George has reached out to you to help him better understand why the process cost accounting is not working. He gives you the following information for July:

Rings Started and Finished Gold Used 0: Diamonds Used Gold Cost Diamond Cost Small Supplies Ues Sales Comissions Advertising Salaries Insurance Rent Sales Price per Ring 10!] BI] 100 $100,000 $1M,D $50,000 $35,001] $20,000 $50,000 $100,000 $45,000 515.000 50.000 Projected Actual 100 02 100 $100,000 5125;!!!) $ 51,000 $00,000 520,000 $50,000 $100,000 $25,000 52500012} 560000