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Robnett Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the companys only product is as follows: Inputs Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 3.8 liters $ 6.50 per liter $ 24.70 Direct labor 0.60 hours $ 18.00 per hour 10.80 Fixed manufacturing overhead 0.60 hours $ 18.50 per hour 11.10 Total standard cost per unit $ 46.60 During the year, the company completed the following transactions: a. Purchased 106,900 liters of raw material at a price of $6.80 per liter. b. Used 93,760 liters of the raw material to produce 24,700 units of work in process. Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation. Cash Raw Materials Work in Process Finished Goods PP&E (net) = Materials Price Variance Materials Quantity Variance Labor Rate Variance Labor Efficiency Variance FOH Budget Variance FOH Volume Variance Retained Earnings 1/1 $1,110,000 $54,340 $0 $60,580 $616,800 = $0 $0 $0 $0 $0 $0 $1,841,720 a. = b. = When recording the raw materials used in production in transaction (b) above, the Raw Materials inventory account will increase (decrease) by:

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