Lemke Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. The standard cost card for the company$$s only product is as follows:

Inputs Standard Quantity or Hours Standard Price or Rate Standard Cost

Direct materials $1\mathrm{.}7$ pounds $ $7\mathrm{.}00$ per pound $ $11\mathrm{.}90$

Direct labor $0\mathrm{.}80$ hours $ $20\mathrm{.}50$ per hour $16\mathrm{.}40$

Fixed manufacturing overhead $0\mathrm{.}80$ hours $ $6\mathrm{.}50$ per hour $5\mathrm{.}20$

Total standard cost per unit $ $33\mathrm{.}50$

During the year, the company started and completed $12,300$ units. Direct labor employees worked $10,540$ hours at an average cost of $$22\mathrm{.}40$ per hour.

Assume that all transactions are recorded on a worksheet as shown in the text. On the left$-$hand side of the equals sign in the worksheet are columns for Cash, Raw Materials, Work in Process, Finished Goods, and PP&E $($net$).$ All of the variance columns are on the right$-$hand$-$side of the equals sign along with the column for Retained Earnings.