Problem 14-48 Standard Costs in Process Costing; All Variances and Journal Entries [LO 14-3, 14-5]

Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (i.e., direct materials and direct labor) of its single product are:

Material	(7 kilograms $6.00 per kilogram)	$	42.00
Labor	(5 hours $18.80 per hour)		94.00

All materials are added at the beginning of processing. The following data were taken from the companys records for November:

In-process beginning inventory			None
In-process ending inventory		840	units, 75% complete as to direct labor
Units completed		6,100	units
Budgeted output		6,500	units
Purchases of materials		55,000	kilograms
Total actual direct labor costs	$	540,000
Actual direct labor hours		32,400	hours
Materials usage variance	$	2,100	Unfavorable
Total materials variance	$	780	Unfavorable

Required:

1. Compute for November:

a. The direct labor efficiency variance. Is this variance favorable (F) or unfavorable (U)?

b. The direct labor rate variance. Is this variance favorable (F) or unfavorable (U)?

c. The actual number of kilograms of material used in the production process during the month.

d. The actual price paid per kilogram of material during the month, the company calculates the direct materials price variance at point of purchase.

e. The amount of direct materials cost and direct labor cost transferred to the Finished Goods Inventory account.

f. The total amount of direct materials cost and direct labor cost in the Work-in-Process Inventory account at the end of the month.

2. Prepare journal entries to record all transactions, including the variances in requirement 1.