Curtis Corporation commenced doing business on December 1. The corporation uses a standard cost system for the manufacturing costs of its only product, Hamex. The standard costs for a unit of Hamex are:
Materials: 10 kilograms at $.70$7
Direct labor: 1 hour at $88
Factory overhead (applied on the basis of $2 per direct labor hour) 2
Total standard cost$17
The following data were extracted from the corporation's books for December

The company records purchases of materials net of discounts. The amounts shown for discounts lost and materials price usage variance are applicable to materials used in manufacturing operations during December.
Inventory data at December 31 indicate the following inventories were on hand:
Units
Finished goods 900
Work in process 1,200
Materials None
The work in process inventory was 100% complete as to materials and 50% as to direct labor and factory overhead. The corporation's policy is to allocate variances to the cost of goods sold and ending inventories; that is, work in process and finished goods.
Required:
Prepare schedules to:
(1) Allocate the variances and discounts lost on purchases to the ending inventories and to cost of goods sold.
(2) Compute the cost of goods manufactured at standard cost and at actual cost for December. Show amounts for materials, labor, and factory overhead separately.
(3) Compute the actual cost of materials, labor, and factory overhead included in the work in process inventory and in the finished goods inventory at December 31.

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Units 3,000 1500 DebtCredit Budgeted Production Units sold Sales Sales discounts Materials price usage variance Materials quantity variance Direct labor rate variance Factory overhead spending variance.………… Discounts lost S 500 45,000 1,500 660 250 300 120