Randall Co. uses a standard costing system to account for its production of kitchenware. Plastic is added at the start of production; labor and overhead are incurred at equal rates throughout the process. The standard cost of one unit is as follows:

The following production and cost data are applicable for October:

a. What amount is carried as the October beginning balance of WIP Inventory?

b. What amount is carried as the October ending balance of WIP Inventory?

c. What amount is transferred to Finished Goods Inventory for October?

d. What are the total direct material, direct labor, and overhead variances for October?

e. Record the journal entries to recognize the direct material, direct labor, and overhead variances.

Transcribed Image Text:

Direct material .. Direct labor... Overhead.... Total cost $ 4.25 4.50 6.50 $15.25