R Company produces dry fertilizer. At the beginning of the year, R had the following standard cost sheet:
Direct materials lbs @ $ $
Direct labor hr @ $
Fixed overhead hr @ $
Variable overhead hr @ $
Total Standard cost per unit $
Overhead rates are computed using practical volume, which is units. The actual results for the year are as follows:
a Units produced:
b Direct materials purchased: pounds @ $ per pound
c Direct materials used: pounds
d Direct labor: hours at $ per hour
e Fixed overhead: $
f Variable overhead: $
Required:
Prepare journal entries for the following:
a The purchase of direct materials
b The issuance of direct materials to production Work in Process
c The addition of direct labor to Work in Process
d The addition of overhead to Work in Process
e The incurrence of actual overhead costs
