Cost and production data for Gigante Products Inc. follow:

During the month, 850 units were sold at $60 each

Note: Materials, labor, and overhead are added evenly throughout the process.

Required:

1. Make general journal entries to record the production of the units in both departments, the movement of the goods, and sale of the goods. Use the two-variance method for overhead variance analysis. (Hint: You must first compute equivalent units and the variances for materials, labor, and factory overhead.)

2. Determine the ending balance of Work in Process in each department.
 

Standard Cost Sheet (Normal capacity-1,000 units) Mixing Blending Total Materials: 1-2 Ib @ $2 per Ib . Il-2 Ib @ $1 per Ib.. $ 4 $ 2 $ 6 Labor. 2 hr @ $10 per hr.. 20 1 hr @ $12 per hr... 12 32 Factory overhead (per standard labor hour): Fixed Variable $1 (2 hr per unit). 3 (1 hr per unit). $2 .... ..... 10 Total.. $30 $18 $48