Eagan Corporation Manufactures One Product

question 38

Essay

Eagan Corporation manufactures one product.The company uses a standard cost system in which inventories are recorded at their standard costs.The standard cost card for the company's only product is as follows:
During the year,direct labor workers (who were paid in cash)worked 11,250 hours at an average cost of $19.70 per hour on 22,300 units.These units were started and completed during the year.
Required:
Completely record the direct labor costs,along with any direct labor variances,in the below worksheet.Because of the width of the worksheet,it is in two parts.In your text,these two parts would be joined side-by-side to make one very wide worksheet.The beginning balances have been provided for each of the accounts,including the Property,Plant,and Equipment (net)account which is abbreviated as PP&E (net).

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Definitions:

Amputation

The surgical removal of all or part of a limb or extremity such as an arm, leg, foot, hand, toe, or finger.

Excision

The process of cutting out or surgical removal of a piece of tissue, an organ, or a foreign object from the body.

Insertion

An anatomical term referring to the point or mode of attachment of a skeletal muscle to the bone or other body part it moves.

Prime Mover

The primary muscle responsible for initiating a specific movement while others assist or stabilize.