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 Hours Lot Number Boxes in Lot (yards) Worked 22 1,100 25,400 3,260 23 1,800 40,980 24 1,300 29,935 5,440 2,750 The following additional information is available: 1. The firm purchased 98,000 yards of material during November at a cost of $119,700. 2. Direct labor during November amounted to $148,850. According to payroll records, production employees were paid $13.00 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 70 percent completed as to direct labor. 4. The standard costs for a box of six blouses are as follows: Direct material 23 yards at Direct labor Production overhead 3 hours at 3 hours at $ 1.20 per yard $ 12.50 per hour $ 9.00 per hour $ 27.60 37.50 27.00 Standard cost per box $ 92.10 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 Quantity Lot (boxes) Standard Cost per Box Total Standard Cost 22 1,100 23 1,800 24 1,300 Standard cost of production $ 0
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 Hours Lot Number Boxes in Lot (yards) Worked 22 1,100 25,400 3,260 23 1,800 40,980 24 1,300 29,935 5,440 2,750 The following additional information is available: 1. The firm purchased 98,000 yards of material during November at a cost of $119,700. 2. Direct labor during November amounted to $148,850. According to payroll records, production employees were paid $13.00 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 70 percent completed as to direct labor. 4. The standard costs for a box of six blouses are as follows: Direct material 23 yards at Direct labor Production overhead 3 hours at 3 hours at $ 1.20 per yard $ 12.50 per hour $ 9.00 per hour $ 27.60 37.50 27.00 Standard cost per box $ 92.10 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 Quantity Lot (boxes) Standard Cost per Box Total Standard Cost 22 1,100 23 1,800 24 1,300 Standard cost of production $ 0
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
Hours
Lot Number
Boxes in Lot
(yards)
Worked
22
1,100
25,400
3,260
23
1,800
40,980
24
1,300
29,935
5,440
2,750
The following additional information is available:
1. The firm purchased 98,000 yards of material during November at a cost of $119,700.
2. Direct labor during November amounted to $148,850. According to payroll records, production employees were paid
$13.00 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 70 percent completed as to direct labor.
4. The standard costs for a box of six blouses are as follows:
Direct material
23 yards at
Direct labor
Production overhead
3 hours at
3 hours at
$ 1.20 per yard
$ 12.50 per hour
$ 9.00 per hour
$ 27.60
37.50
27.00
Standard cost per box
$ 92.10
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
Quantity
Lot
(boxes)
Standard Cost
per Box
Total Standard
Cost
22
1,100
23
1,800
24
1,300
Standard cost of production
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea5e1b85-5499-49e1-b515-d7fb5cde60bb%2Fd7b625f4-cc51-4362-b726-049c46ae6385%2Fqmdu6sc_processed.png&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
Hours
Lot Number
Boxes in Lot
(yards)
Worked
22
1,100
25,400
3,260
23
1,800
40,980
24
1,300
29,935
5,440
2,750
The following additional information is available:
1. The firm purchased 98,000 yards of material during November at a cost of $119,700.
2. Direct labor during November amounted to $148,850. According to payroll records, production employees were paid
$13.00 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 70 percent completed as to direct labor.
4. The standard costs for a box of six blouses are as follows:
Direct material
23 yards at
Direct labor
Production overhead
3 hours at
3 hours at
$ 1.20 per yard
$ 12.50 per hour
$ 9.00 per hour
$ 27.60
37.50
27.00
Standard cost per box
$ 92.10
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
Quantity
Lot
(boxes)
Standard Cost
per Box
Total Standard
Cost
22
1,100
23
1,800
24
1,300
Standard cost of production
$
0
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