Problem 14-49 (Algo) Standard Costs In Process Costing; All Varlances 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 * $5.00 per kilogram) $ 35.00 Labor (5 hours $18.40 per hour) 92.ee All materials are added at the beginning of processing. The following data were taken from the company's records for November: In-process beginning inventory None In-process ending inventory 800 units, 70% complete as to direct labor Units completed 5,708 units Budgeted output 6, 108 units Purchases of materials 51,eee kilograms Total actual direct labor costs $ 500, eee Actual direct labor hours 29,808 hours Materials usage variance $1,600 Unfavorable Total materials variance $ 588 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. Required 1 Required 2 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. (Round your answer to 3 decimal places.) 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. Show less a. b. kilograms c. d. Direct labor efficiency variance Direct labor rate variance Actual number of kilograms Actual price paid per kilogram of material Amount transferred to the finished goods Inventory account Ending inventory at standard cost e f. Required 1 Required 2 2. Prepare journal entries to record all transactions, including the variances in requirement 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for the purchase of 51,000 kilograms of materials. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal Journal entry worksheet
