Per Bag Direct materials: 25 pounds of CWhiz-2000 @ $0.08/lb. = $ 2.00 Direct labor: 0.05...

 

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Per Bag Direct materials: 25 pounds of CWhiz-2000 @ $0.08/lb. = $ 2.00 Direct labor: 0.05 hour @ $32.00/hr. = $ 1.60 The company manufactured 100,000 bags of Cheese-Be-Good in December and used 2,700,000 pounds of CWhiz-2000 and 5,200 direct labor hours. During the month, the company purchased 3,000,000 lbs. of CWhiz-2000 at $0.075 per pound, and incurred a total payroll of $182,000 for direct labor. The company records purchases at standard cost and therefore recognizes material price variances at point of purchase. Required: 1) Compute the price and usage variances for direct materials, and the rate and efficiency variances for direct labor for the month of December. Round all four answers to nearest dollar. 2) Prepare journal entries (noted below) to record the preceding events for December. Assume materials are paid on account during the month of purchase and settled the following month. i) Purchase of Direct Materials ii) Issuance of Direct Materials to production ii) Direct Labour cost for the period Per Bag Direct materials: 25 pounds of CWhiz-2000 @ $0.08/lb. = $ 2.00 Direct labor: 0.05 hour @ $32.00/hr. = $ 1.60 The company manufactured 100,000 bags of Cheese-Be-Good in December and used 2,700,000 pounds of CWhiz-2000 and 5,200 direct labor hours. During the month, the company purchased 3,000,000 lbs. of CWhiz-2000 at $0.075 per pound, and incurred a total payroll of $182,000 for direct labor. The company records purchases at standard cost and therefore recognizes material price variances at point of purchase. Required: 1) Compute the price and usage variances for direct materials, and the rate and efficiency variances for direct labor for the month of December. Round all four answers to nearest dollar. 2) Prepare journal entries (noted below) to record the preceding events for December. Assume materials are paid on account during the month of purchase and settled the following month. i) Purchase of Direct Materials ii) Issuance of Direct Materials to production ii) Direct Labour cost for the period