Journal entries for materials and labor variances LO₄ Jo-Lee Corporation has established the following standard cost per unit:

Although 10,000 units were budgeted, only 8,800 units were produced.
The purchasing department bought 55,000 pounds of materials at a cost of $ 1 23,750. Actual pounds of materials used were 54,305. Direct labor cost was $127,400 for 18,200 hours worked.
Required:
1.Make journal entries to record the materials transactions, assuming that the materials price variances were taken at the time of purchase.
2. Make journal entries to record the labor variances.

Transcribed Image Text:

Materials-5.5 lbs. @ $2.20 per lb. Labor-1.8 hrs. @ $6.25 per hr.... $12.10 11.25