Perry Manufacturing Company uses a standard cost system in its accounting records. The standard costs for its one product are as follows:

Normal capacity is 2,000 direct labor hours per month. Materials, work in process, and finished goods are recorded in inventory at standard cost. The following information is taken from last month's records:

Required:
Prepare journal entries to record the information provided. Use the two-variance method to compute materials and labor variances and the four-variance method to compute overhead variances.

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Materials Direct labor 9 kilograms at $2.00= $18.00 2 hours at 10.50# 21.00 2 hours t 3.006.00 2 hours at 10.0020.00 $65.00 rd cost 900 units Production Materials purchased. Materials used in production. Direct labor payroll.. 10 000 kilograms at $1.95 8 600 kilograms 1,740 hours at $11.55 $24,700