Refer to the information for Deporte Company above.
Deporte Company produces single-colored t-shirts. Materials for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established:
Direct materials (2.4 lbs. @ $ 0.95) ......... $ 2.28
Direct labor (0.75 hr. @ $ 7.40) ........... 5.55
Standard prime cost ............... $ 7.83
During the year, 79,500 pounds of material were purchased and used for the changeover activity. There were 30,000 batches produced, with the following actual prime costs:
Direct materials ......... $ 63,000
Direct labor ............$153,000 (for 22,450 hrs.)
1. Prepare a journal entry for the purchase of raw materials.
2. Prepare a journal entry for the issuance of raw materials.
3. Prepare a journal entry for the addition of labor to Work in Process.
4. Prepare a journal entry for the closing of variances to Cost of Goods Sold.

  • CreatedSeptember 22, 2015
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