The following information applies to the questions displayed below.] Saskatewan Can Company manufactures...
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The following information applies to the questions displayed below.]
Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller.
Direct Labor:
Direct Material:
Quantity, 0.23 hour
Quantity, 2 kilograms
Rate, $11.50 per hour
Price, $0.56 per kilogram
Actual material purchases amounted to 122,400 kilograms at $0.62 per kilogram. Actual costs incurred in the production of 36,000 units were as follows:
Direct labor:
$110,916 for 9,360 hours
Direct material:
$52,452 for 84,600 kilograms
1.Record the purchase of direct material on account and the direct-material purchase price variance.
2.Record the addition of direct-material cost to work-in-process inventory and the direct-material quantity variance.
3.Record the addition of direct-labor cost to work-in-process inventory and the direct-labor variances.
4.Record the closing of the direct-material and direct-labor variances to cost of goods sold.
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