Jeff-Macksey Corporation manufactures a product called Maxitech, which hasthe following standard costs:
Materials 5 units at $6 = $30.00
Labor3/4 hr. at 12= 9.00
Factory overhead (based on normal capacity of 5,000
machine hours) 2 hrs. at 14 = 28.00
Total standard cost $67.00
The following information pertains to actual production activity for July:
(a) Work in process, beginning inventory contained 300 units of Maxitech (complete as to materials, but only 2/3 complete as to labor and 1/2 complete as to machining) and ending inventory contained 200 units (complete as to materials, but only 2/5 complete as to labor and 1/4 complete as to machining). 2,400 units of Maxitech were completed and transferred to finished goods inventory during July.
(b) 11,000 units of materials were purchased on account at a total cost of $66,900. The materials price variance is recorded when the materials are purchased.
(c) 12,000 units of materials were issued to production and used during the period.
(d) Direct labor cost totaled $20,570 for 1,700 actual hours worked. Assume the liability has already been recorded, but the cost has not been distributed.
(e) Actual machining required during July totaled 4,900 hours.
(f) Actual factory overhead was $67,700. Factory Overhead Control is closed at the end of each month.
(g) 20% of the factory overhead budgeted at 5,000 machine hours was variable cost and the balance was fixed cost.
Required:
Prepare the journal entries to record the information provided, including two variances for materials and labor and three variances for factory overhead.