Case 10-49 Student Name:
Class:
1. Standard cost of lots N42, N43, and N44:
METRO FASHIONS, INC.
Standard Total
Quantity Cost per Standard
Lot (boxes) Box Cost
N42 * * *
N43 * * *
N44 * * *
Standard cost of production *
2. Variances:
METRO FASHIONS, INC.
Actual cost of material purchased *
Standard cost of material purchased *
Direct-material purchase price variance *
*
Lot no.
N42 N43 N44 Total
Direct-material quantity variance:
Standard yards:
Boxes in lot * * * *
Standard yards per box x * * * *
Total standard quantity * * * *
Actual yards used * * * *
Variance in yards * * * *
Standard price x * * * *
Direct-material quantity variance * * * *
* * * *
Lot no.
N42 N43 N44 Total
Direct-labor efficiency variance:
Standard hours:
Boxes in lot * * *
Standard hours per box * * *
Total * * *
Percentage of completion * * *
Total standard hours * * * *
Actual hours worked * * * *
Variance in hours * * * *
Standard rate * * * *
Direct-labor efficiency variance * * * *
* * * *
Lot no.
N42 N43 N44 Total
Direct-labor rate variance:
METRO FASHIONS, INC.
Direct-Material Purchase Price Variance
For November
Standard Cost of Production
For November
Direct-Material and Direct-Labor Variances
For November
Actual hours worked * * * *
Rate paid in excess of standard * * * *
Variance * * * *
* * * *
METRO FASHIONS, INC.
General Journal
Account Debit Credit
Raw-Material Inventory *
Direct-Material Price Variance *
Accounts Payable *
Work-in-Process Inventory *
Direct-Material Quantity Variance *
Raw-Material Inventory *
Work-in-Process Inventory *
Direct-Labor Rate Variance *
Direct-Labor Efficiency Variance *
Wages Payable *
incurrence of direct-labor cost)
(To add direct-material cost to work-in-process inventory
and record the direct-material quantity variance)
(To add direct-labor cost to work-in-process inventory,
record the direct-labor variances, and record the
(To record the purchase of raw material)
Case 10-49 Student Name:
Class:
1. Standard cost of lots N42, N43, and N44:
METRO FASHIONS, INC.
Standard Total
Quantity Cost per Standard
Lot (boxes) Box Cost
N42 2,000 $106.50 $213,000
2. Variances:
METRO FASHIONS, INC.
“
Actual cost of material purchased $212,800
METRO FASHIONS, INC.
Direct-Material and Direct-Labor Price Variance
For November
Lot no.
N42 N43 N44 Total
Direct-material quantity variance:
Standard yards:
Boxes in lot 2,000 3,400 2,400 7,800
Standard yards per box 24 24 24 24
Lot no.
N42 N43 N44 Total
Direct-labor efficiency variance:
Standard hours:
Boxes in lot 2,000 3,400 2,400
Standard hours per box 3 3 3
Lot no.
Direct-Material Price Variance
For November
Instructor
McGraw-Hill/Irwin
Standard Cost of Production
For November
N42 N43 N44 Total
Direct-labor rate variance:
Actual hours worked 5,960 10,260 5,780 22,000
METRO FASHIONS, INC.
General Journal
Account Debit Credit
incurrence of direct-labor cost)
and record the direct-material quantity variance)
record the direct-labor variances, and record the
Raw-Material Inventory 209,000
Direct-Material Price Variance 3,800
Accounts Payable 212,800
(To record the purchase of raw material)