Lusher Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company 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. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows Standard Quantity Or Hours 1.5 kilos 0.7 hours 0.7 hours Inputs Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit Standard Rate Cout $ 7.50 15.40 Standard Price $ 5.00 per kilo $22.00 per hour $ 5.50 per hour $26.75 The company calculated the following variances for the year Materiale price variance Materials quantity variance Labor Eate Variance Labor efficiency variance Pixed manufacturing overhead budget variance Pixed manufacturing overhead volume variance $24.275 U S 500 F $25.968 $26, 400 U $10, 145 U $7,315 F The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $105,105 and budgeted activity of 19,110 hours During the year, the company completed the following transactions The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $105,105 and budgeted activity of 19.110 hours During the year, the company completed the following transactions: a. Purchased 48,550 kilos of raw material at a price of $5.50 per kilo. b. Used 43.700 kilos of the raw material to produce 29,200 units of work in process. c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 21,640 hours at an average cost of $23.20 per hour d. Applied fixed overhead to the 29,200 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $115,250. Of this total, $40.250 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $75,000 related to depreciation of manufacturing equipment. e. Transferred 29,200 units from work in process to finished goods. Sold for cash 32.000 units to customers at a price of $33.60 per unit. g. Completed and transferred the standard cost associated with the 32,000 units sold from finished goods to cost of goods sold. h. Paid $171,000 of selling and administrative expenses. 1. Closed all standard cost variances to cost of goods sold. Required: 1 and 2 Record the above transactions in the worksheet that appears below. Because of the width of the worksheet, it is in two parts In your text, these two parts would be joined side-by-side to make one very wide worksheet The beginning balances have been provided for each of the accounts, including the Property. Plant, and Equipment (net) account which is abbreviated as PP&E (net) and Determine the ending balance (e.g. 12/31 balance) in each account. 3. Prepare an income statement for the year Complete this question by entering your answers in the tabs below Complete this on by entering you Heg 1 and 2 Reg 3 1 and 2. Record the above transactions in the worksheet that appears below. Because of the width of the worksheet i n the part in your teet these two The beginning balances have been provided for each of the accounts, ching the procesty. Plant, and mente account which is abbrev account in your het wedel would be one side-bye to a ) and Dere the ending baca very wide et 123 cenach Cash Raw Materials Work in FOH Bugat OH W Retained Required: 1 and 2. Record the above transactions in the worksheet that appears below. Because of t In your text, these two parts would be joined side-by-side to make one very wide workshe provided for each of the accounts, including the Property. Plant, and Equipment (net) acco Determine the ending balance (e.g.. 12/31 balance) in each account. 3. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Prepare an income statement for the year. Lusher Corporation Income Statement
