The standard cost sheet for Chambers Company, which manufactures one product, follows. ...
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Accounting
The standard cost sheet for Chambers Company, which manufactures one product, follows.
Direct materials, 40 yards at $2.00 per yard
$
80
Direct labor, 5 hours at $20 per hour
100
Factory overhead applied at 80% of direct labor
(variable costs = $60; fixed costs = $20)
80
Variable selling and administrative
64
Fixed selling and administrative
40
Total unit costs
$
364
Standards have been computed based on a master budget activity level of 28,800 direct labor-hours per month. Actual activity for the past month was as follows.
Materials used
228,000
yards at $2.05 per yard
Direct labor
25,200
hours at $20.40 per hour
Total factory overhead
$
444,000
Production
5,000
units
Assume there are no beginning inventories or ending inventories. All production was sold for $2,375,000.
Required:
Prepare the journal entries to record the activity for the last month using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the month. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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