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Journal Entries under Standard Costing $($Appendix$),$ Posting Journal Entries for Variances $($Appendix$)($LO $10-6,10-9)$

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 $0\mathrm{.}16$ hour quantity $9$ kilograms

Rate $8$ per hour price $0\mathrm{.}42$ per kilogram

Actual material purchases amounted to $233,200$ kilograms at $$0\mathrm{.}475$ per kilogram. Actual costs incurred in the production of $22,000$ units were as follows:

Direct labor: $33264$ for $3960$ hours

Direct material: $98230$ for $206800$ kilograms

Required:

Prepare the following journal entries. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.$)$

$1$

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.

Post the journal entries prepared above to the appropriate T$-$accounts below. Be sure to select from the dropdown menu the transaction number associated with each amount posted.

raw material inventory

work$-$in$-$process inventory

accounts payable

wages payable

cost of goods sold

direct material purchase price variance

direct material quantity variance

direct labor quantity variance

direct labor rate variance

direct labor efficiency variance

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