Withers Company uses a standard process costing system in its one production Department. Material (A) is added at the beginning of the process , and material (B) is added when the process are 90% Complete. Inspection takes place at the end of the process, and the normal spoilage is 5% of good units .Normal capacity is 10000 direct labor hour ,and the budgeted fixed FOH at that level is $400000. The standard cost per

unit is as follows:-

Direct Material (A) . (4 gallons @ $12 per gallon ) .$48

Direct Material (B (. ( 2 square feet @ $7per feet ) ..$14

Direct Labor..(1 hour @ 115per DLH)$115

Factory overhead . (Applied on DLH Base ).. $68

Total standard cost per unit. 245

Additional data for January 2016 are as follows:-

1 - Beginning WIP inventory, 3000 units (1/3 completed) , and Ending WIP inventory,5000 units ( 40% completed ) .

2 - Started in process during the month , 11000 units and Finished during the month , 8000 units.

3 - Actual costs incured are as follows : -

Material (A) used .. 50000 gallons@$10 per gallon

Material (B) used .. 18000 sq . ft. @$7.5per sq ft

Direct Labor ..10200 hours 120 per DLH

Factory overhead .. $601000

Required :-

1 - prepare standard cost process Report and performance Report, and analysis Total variances using two- variance mothed .

2 - Record Journal Entries.