160 Klash Company adopted a standard cost system several years ago. The company uses standard costs...
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160 Klash Company adopted a standard cost system several years ago. The company uses standard costs for all of its inventories. The standard costs for direct materials and labor for its single product are as follows: Materials (12 kilograms/unit x $7.00/kilogram) = $84.00/unit; direct labor (8 hours/unit x $12.00/hour) = $96.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December: In-process beginning inventory In-process ending inventory-60% complete as to labor Units completed Budgeted output Purchases and issuance of materials, in kilograms Total actual labor cost incurred Actual hours of labor worked Direct materials usage variance Total direct materials variance none 1,150 units 6.550 units 6,750 units 96,000 $706,136 $ $ 57,880 hours 700 favorable 6,020 unfavorable Note: number of kilograms issued to production during the period = number of kilograms purchased. Required: 1. Calculate the standard cost of the actual kilograms of material purchased. 2. Calculate the total standard kilograms for the production of the period (that is, for "equivalent units produced with respect to direct materials") 3. Calculate the total standard cost of materials for the production of the period. 4. Calculate the actual price per kilogram of material of material purchased this period. 5. Calculate the direct labor rate variance. 160 Klash Company adopted a standard cost system several years ago. The company uses standard costs for all of its inventories. The standard costs for direct materials and labor for its single product are as follows: Materials (12 kilograms/unit x $7.00/kilogram) = $84.00/unit; direct labor (8 hours/unit x $12.00/hour) = $96.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December: In-process beginning inventory In-process ending inventory-60% complete as to labor Units completed Budgeted output Purchases and issuance of materials, in kilograms Total actual labor cost incurred Actual hours of labor worked Direct materials usage variance Total direct materials variance none 1,150 units 6.550 units 6,750 units 96,000 $706,136 $ $ 57,880 hours 700 favorable 6,020 unfavorable Note: number of kilograms issued to production during the period = number of kilograms purchased. Required: 1. Calculate the standard cost of the actual kilograms of material purchased. 2. Calculate the total standard kilograms for the production of the period (that is, for "equivalent units produced with respect to direct materials") 3. Calculate the total standard cost of materials for the production of the period. 4. Calculate the actual price per kilogram of material of material purchased this period. 5. Calculate the direct labor rate variance.
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Solution 1 Standard cost of actual kilograms of material purchased 700kg x 57880 kg 404460 ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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