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A company uses a standard cost system

 
A company uses a standard cost system. One of the most popular products is a center that houses electronic units. The per-unit standard costs of the center, assuming a "normal" volume of 1,000 units per month asre as follows;
 
Direct materials, 100 board-feet of wood at $1.30 per foot................ $130.00
 
Direct labor, 5 hours at $8.00 per hour..............................................     40.00
 
Manufacturing overhead (applied at $22 perunit)..............................
   
Fixed ($15,000/1,000 units of normal production 0...........$15.00
 
Variable...........................................................................   7.00       22.00
 
Total standard unit cost................................................               $ 192.00
 
During July, 800 centers were scheduled and produced at the following unit costs:
 
Direct materials, 100 fee at $1.20 per foot..................................... $132.00
 
Direct labor, 5 1/2 hours at $7.80 per hour....................................    42.90
 
Manufacturing overhead, $18,480 /800 units.................................      23.10

Total actual unit cost.................................................................. $198.00
 
b. Prepare journal entries to assign manufacturing cost to the Work in Process Inventory account and to record cost variances forJuly. Use seperate entries entries for
(1) Direct materials
 
(2) Direct labor and
 
(3) Overhead costs.

May 08 2018 View more View Less

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