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Please complete the following project ASAP and show every step and calculations. STANDARD COSTING Direct materials Sand makes up about 85% of the weight of
Please complete the following project ASAP and show every step and calculations.
STANDARD COSTING | ||||||||
Direct materials | ||||||||
Sand makes up about 85% of the weight of the finished product, and is the only material | ||||||||
treated as a direct material. All other materials are treated as indirect, and thus part of | ||||||||
manufacturing overhead. There are 19,300 grams of sand in one finished goods unit (case), | ||||||||
but not all sand purchased makes it into the finished product. Waste and scrap in the normal | ||||||||
manufacturing process results in approximately 4% of the sand purchased being lost. | ||||||||
Sand is purchased by the metric ton (one million grams). The cost from Sharpe's main | ||||||||
supplier is $9.95 per metric ton, shipped locally at a cost to Sharpe of $18.05 per metric ton. | ||||||||
Direct labor | ||||||||
Each case is expected to require 0.46 direct labor hours to complete. This amount comes | ||||||||
from process analysis at Sharpe, and does not include setup and down time, which are | ||||||||
expected to average 0.01 hours per case. | ||||||||
Sharpe pays its direct laborers an hourly wage of $17.00. Payroll taxes and benefits average | ||||||||
$5.15 per direct labor hour. | ||||||||
Manufacturing overhead | ||||||||
Sharpe uses a traditional costing system and allocates overhead on the basis of standard | ||||||||
direct labor hours. There are $386,000 of overhead costs expected in 2022, and 2022's unit | ||||||||
sales are budgeted at 45,000 cases. | ||||||||
JANUARY 2022 RESULTS | ||||||||
In January, 2022, sales were $114,400 on 4,300 units sold. | ||||||||
85 metric tons of sand were purchased and used at a total cost, including shipping, of $2,200. | ||||||||
Actual direct labor costs were $45,200, and actual direct labor hours were 1,960. | ||||||||
Actual overhead costs were $31,900. |
A 00 C F I D E F Sharpe Glassworks, Inc. Standard Cost Worksheet Standard Price Standard Cost Manufacturing Cost Element Direct materials Standard Quantity metric tons 85 Direct labor hours 0.46 Manufacturing overhead hours 1 Total - Supporting calculations: Sales revenue Cost goods sold 114400 0.004404 1 gross profit 1 2 3 5 5 7 Instructions Standard Costs January Review + A B F G H E Sharpe Glassworks, Inc. Income Statement *FOR INTERNAL USE ONLY* Sales revenue Cost of goods sold (at standard) Standard gross profit Variances Materials price Materials quantity Labor price Labor quantity Manufacturing overhead Total variance Gross profit (actual) Supporting calculations: | Instructions Standard Costs January Review + adu
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