Prepare a schedule of standard production costs for January, based on actual production of 7,400 units. New Jersey Valve Company manufactured 7,400 units during January of a control valve used by milk processors in its Camden plant.Records indicated the following:Direct laborDirect material purchasedDirect material usedThe control valve has the following standard prime costs:45,300 hour at $15.40 per hour32,000 pounds at $2.80 per pound29,300 poundsDirect materialDirect laborStandard prime cost per unit4 pounds at $2.70 per pound6 hour at $15.80 per hour$ 10.8094.80$ 105.60Required:1. Prepare a schedule of standard production costs for January, based on actual production of 7,400 units.2. For the month of January, compute the following variances. Required 1 Required 2Prepare a schedule of standard production costs for January, based on actual production of 7,400 units.NEW JERSEY VALVE COMPANY: CAMDEN PLANTSchedule of Standard Production CostsBased on 7,400 UnitsFor the Month of JanuaryDirect materialDirect laborTotal standard production costsStandard Costs$0

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Description: Prepare a schedule of standard production costs for January, based on actual production of 7,400 units. New Jersey Valve Company manufactured 7,400 units during January of a control valve used by milk processors in its Camden plant.Records indicated

Total Direct material cost = Actual production × number of pounds× cost per pound

Answered: New Jersey Valve Company manufactured…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Prepare a schedule of standard production costs for January, based on actual production of 7,400 units.

New Jersey Valve Company manufactured 7,400 units during January of a control valve used by milk processors in its Camden plant.
Records indicated the following:
Direct labor
Direct material purchased
Direct material used
The control valve has the following standard prime costs:
45,300 hour at $15.40 per hour
32,000 pounds at $2.80 per pound
29,300 pounds
Direct material
Direct labor
Standard prime cost per unit
4 pounds at $2.70 per pound
6 hour at $15.80 per hour
$ 10.80
94.80
$ 105.60
Required:
1. Prepare a schedule of standard production costs for January, based on actual production of 7,400 units.
2. For the month of January, compute the following variances.

Required 1 Required 2
Prepare a schedule of standard production costs for January, based on actual production of 7,400 units.
NEW JERSEY VALVE COMPANY: CAMDEN PLANT
Schedule of Standard Production Costs
Based on 7,400 Units
For the Month of January
Direct material
Direct labor
Total standard production costs
Standard Costs
$
0

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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