Lewis Manufacturing Uses a Standard Cost System

question 124

Essay

Lewis Manufacturing uses a standard cost system.The direct labor cost standard is $18.00 per direct labor hour.The direct labor efficiency standard is 0.5 direct labor hour per unit.Actual direct labor for the month is 1,200 hours for a total cost of $24,000.Production for the month is 3,000 units.Give the journal entry to record direct labor (not paid).Omit explanation.

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Definitions:

Mission Statement

A brief description of a company's fundamental purpose and core values, outlining its goals and guiding its decisions.

Business Plan

A detailed document that outlines the goals of a business, the strategy for achieving them, and the time frame, as well as providing a detailed plan for its financials, management, and operations.

Stakeholder Groups

Collections of individuals or organizations with an interest or stake in a particular business or project.

CSR Programs

Corporate Social Responsibility programs are initiatives by businesses to conduct their operations in an ethical manner, focusing on social, environmental, and economic responsibilities.