Prepare a schedule of standard production costs for January, based on actual production of 7,400 units. ### New Jersey Valve Company Production and Cost Analysis**Production Overview:**- The company manufactured 7,400 units during January of a control valve used by milk processors at its Camden plant.**Recorded Costs:**- **Direct Labor:** 45,300 hours at $15.40 per hour- **Direct Material Purchased:** 32,000 pounds at $2.80 per pound- **Direct Material Used:** 29,300 pounds**Standard Prime Costs for Control Valve:**- **Direct Material:** 4 pounds at $2.70 per pound = $10.80- **Direct Labor:** 6 hours at $15.80 per hour = $94.80Total **Standard Prime Cost per Unit** = $105.60**Tasks:**1. **Prepare a Schedule of Standard Production Costs for January:** - Calculate based on actual production of 7,400 units.2. **Compute Variances:** - Analyze and compute the variances for the month of January.This analysis will help in understanding cost management and efficiency in production processes. **Preparation of Standard Production Costs for January**This section outlines the task of preparing a schedule of standard production costs for January, based on actual production of 7,400 units at the New Jersey Valve Company, Camden Plant.**NEW JERSEY VALVE COMPANY: CAMDEN PLANT****Schedule of Standard Production Costs**- **Based on 7,400 Units**- **For the Month of January**| | **Standard Costs** ||---|--------------------|| **Direct material** | [Value not provided] || **Direct labor** | [Value not provided] || **Total standard production costs** | $0 |This table is intended to capture the costs associated with direct materials and direct labor, culminating in the total standard production costs for the specified production volume. However, specific cost values have not been provided and the total currently stands at $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 Production and Cost Analysis**Production Overview:**- The company manufactured 7,400 units during January of a contro

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

Answered: New Jersey Valve Company manufactured…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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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 Production and Cost Analysis

**Production Overview:**
- The company manufactured 7,400 units during January of a control valve used by milk processors at its Camden plant.

**Recorded Costs:**
- **Direct Labor:** 45,300 hours at $15.40 per hour
- **Direct Material Purchased:** 32,000 pounds at $2.80 per pound
- **Direct Material Used:** 29,300 pounds

**Standard Prime Costs for Control Valve:**
- **Direct Material:** 4 pounds at $2.70 per pound = $10.80
- **Direct Labor:** 6 hours at $15.80 per hour = $94.80

Total **Standard Prime Cost per Unit** = $105.60

**Tasks:**

1. **Prepare a Schedule of Standard Production Costs for January:**
- Calculate based on actual production of 7,400 units.

2. **Compute Variances:**
- Analyze and compute the variances for the month of January.

This analysis will help in understanding cost management and efficiency in production processes.

**Preparation of Standard Production Costs for January**

This section outlines the task of preparing a schedule of standard production costs for January, based on actual production of 7,400 units at the New Jersey Valve Company, Camden Plant.

**NEW JERSEY VALVE COMPANY: CAMDEN PLANT**

**Schedule of Standard Production Costs**
- **Based on 7,400 Units**
- **For the Month of January**

| | **Standard Costs** |
|---|--------------------|
| **Direct material** | [Value not provided] |
| **Direct labor** | [Value not provided] |
| **Total standard production costs** | $0 |

This table is intended to capture the costs associated with direct materials and direct labor, culminating in the total standard production costs for the specified production volume. However, specific cost values have not been provided and the total currently stands at $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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