Required information [The following information applies to the questions displayed below.] European Styles, Incorporated, manufactures women's blouses of one quality, which are produced in lots to fill each special order. Its customers are department stores in various cities. European Styles sews the particular stores' labels on the blouses. During November, the company worked on three orders, for which the month's job-cost records disclose the following data. Material Used Lot Number Boxes in Lot (yards) Hours Worked 22 1,100 23,220 4,360 23 1,800 37,220 24 1,300 27,345 7,220 3,150 The following additional information is available: 1. The firm purchased 96,000 yards of material during November at a cost of $107,000. 2. Direct labor during November amounted to $250,410. According to payroll records, production employees were paid $17.00 per hour. 3. There was no work in process on November 1. During November, lots 22 and 23 were completed. All material was issued for lot 24, which was 60 percent completed as to direct labor. 4. The standard costs for a box of six blouses are as follows: Direct material 21 yards at Direct labor Production overhead 4 hours at 4 hours at $ 1.10 per yard $ 16.60 per hour $ 12.00 per hour $ 23.10 66.40 48.00 Standard cost per box $ 137.50 Required: 1. Prepare a schedule computing the standard cost of lots 22, 23, and 24 for November. Note: Round "Standard Cost per Box" to 2 decimal places.
Required information [The following information applies to the questions displayed below.] European Styles, Incorporated, manufactures women's blouses of one quality, which are produced in lots to fill each special order. Its customers are department stores in various cities. European Styles sews the particular stores' labels on the blouses. During November, the company worked on three orders, for which the month's job-cost records disclose the following data. Material Used Lot Number Boxes in Lot (yards) Hours Worked 22 1,100 23,220 4,360 23 1,800 37,220 24 1,300 27,345 7,220 3,150 The following additional information is available: 1. The firm purchased 96,000 yards of material during November at a cost of $107,000. 2. Direct labor during November amounted to $250,410. According to payroll records, production employees were paid $17.00 per hour. 3. There was no work in process on November 1. During November, lots 22 and 23 were completed. All material was issued for lot 24, which was 60 percent completed as to direct labor. 4. The standard costs for a box of six blouses are as follows: Direct material 21 yards at Direct labor Production overhead 4 hours at 4 hours at $ 1.10 per yard $ 16.60 per hour $ 12.00 per hour $ 23.10 66.40 48.00 Standard cost per box $ 137.50 Required: 1. Prepare a schedule computing the standard cost of lots 22, 23, and 24 for November. Note: Round "Standard Cost per Box" to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![Required information
[The following information applies to the questions displayed below.]
European Styles, Incorporated, manufactures women's blouses of one quality, which are produced in lots to fill each
special order. Its customers are department stores in various cities. European Styles sews the particular stores' labels on
the blouses. During November, the company worked on three orders, for which the month's job-cost records disclose the
following data.
Material Used
Lot Number
Boxes in Lot
(yards)
Hours Worked
222
22
1,100
23,220
4,360
23
1,800
37,220
24
1,300
27,345
7,220
3,150
The following additional information is available:
1. The firm purchased 96,000 yards of material during November at a cost of $107,000.
2. Direct labor during November amounted to $250,410. According to payroll records, production employees were paid
$17.00 per hour.
3. There was no work in process on November 1. During November, lots 22 and 23 were completed. All material was
issued for lot 24, which was 60 percent completed as to direct labor.
4. The standard costs for a box of six blouses are as follows:
Direct material
21 yards at
Direct labor
4 hours at
Production overhead
4 hours at
$ 1.10 per yard
$ 16.60 per hour
$ 12.00 per hour
$ 23.10
66.40
48.00
Standard cost per box
$ 137.50
Required:
1. Prepare a schedule computing the standard cost of lots 22, 23, and 24 for November.
Note: Round "Standard Cost per Box" to 2 decimal places.
EUROPEAN STYLES, INCORPORATED
Standard Cost of Production
For November
Lot
Quantity
Standard Cost
(boxes)
per Box
Total Standard
Cost
22
1,100
23
1,800
24
1,300
Standard cost of production](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff831c598-9763-4056-8dc5-3e3822d0cbd2%2F650a694c-1ead-4deb-a1cf-f4c366e4411b%2Frbr9d4o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
European Styles, Incorporated, manufactures women's blouses of one quality, which are produced in lots to fill each
special order. Its customers are department stores in various cities. European Styles sews the particular stores' labels on
the blouses. During November, the company worked on three orders, for which the month's job-cost records disclose the
following data.
Material Used
Lot Number
Boxes in Lot
(yards)
Hours Worked
222
22
1,100
23,220
4,360
23
1,800
37,220
24
1,300
27,345
7,220
3,150
The following additional information is available:
1. The firm purchased 96,000 yards of material during November at a cost of $107,000.
2. Direct labor during November amounted to $250,410. According to payroll records, production employees were paid
$17.00 per hour.
3. There was no work in process on November 1. During November, lots 22 and 23 were completed. All material was
issued for lot 24, which was 60 percent completed as to direct labor.
4. The standard costs for a box of six blouses are as follows:
Direct material
21 yards at
Direct labor
4 hours at
Production overhead
4 hours at
$ 1.10 per yard
$ 16.60 per hour
$ 12.00 per hour
$ 23.10
66.40
48.00
Standard cost per box
$ 137.50
Required:
1. Prepare a schedule computing the standard cost of lots 22, 23, and 24 for November.
Note: Round "Standard Cost per Box" to 2 decimal places.
EUROPEAN STYLES, INCORPORATED
Standard Cost of Production
For November
Lot
Quantity
Standard Cost
(boxes)
per Box
Total Standard
Cost
22
1,100
23
1,800
24
1,300
Standard cost of production
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