Journalizing standard costs in two departments}

Cornhusker Manufacturing, Inc. has two departments, Mixing and Blending. When goods are completed in Mixing, they are transferred to Blending and then to the finished goods storeroom. There was no beginning or ending work in process in either department. Listed below is information to be used in preparing journal entries at the end of October:

Prepare journal entries for the following:
1. The issuance of direct materials into production and the recording of the materials variances.
2. The use of direct labor in production and the recording of the labor variances.
3. The entries to record the actual and applied factory overhead.
4. The entries to transfer the production costs from Mixing to Blending and from Blending to finished goods.

Transcribed Image Text:

Standard cost of direct materials for actual production-Mixing Actual cost of direct materials used in production-Mixing. Materials price variance-Mixing Materials quantity variance-Mixing Standard cost of direct materials for actual production-Blending Actual cost of direct materials used in production-Blending Materials price variance-Blending Materials quantity variance-Blending $185,000 193,000 10,000 unfav 2,000 fav 130,000 124,000 4,000 fav 2,000 fav Standard cost of direct labor for actual production-Mixing Actual cost of direct labor used in production-Mixing Labor rate variance-Mixing Labor efficiency variance-Mixing Standard cost of direct labor for actual production-Blending Actual cost of direct labor used in production-Blending Labor rate variance-Blending Labor efficiency variance-Blending 110,000 117,000 10,000 unfav 3,000 fav 95,000 80,000 8,000 fav 7,000 fav 145,000 Actual factory overhead Factory overhead applied-Mixing Factory overhead applied-Blending 85,000 70,000