Making journal entries to charge costs to production, to record variances, and to transfer costs to finished goods. The actual costs, standard costs, and variances applicable to work performed in the Production Department of the Akito Company during August 19X5 are given below.

During the month, a total of 455 units with a standard cost of $274.35 each were completed and transferred to finished goods.
Instructions 1. Give the entries in general journal form to record each of the following. (Date the entries August 31, 19X5. Eliminate explanations.)

a. Charge the raw materials to production and record the materials variances.

b. Charge the labor to production and record the labor variances.

c. Charge the manufacturing overhead to production and record the variances.

d. Transfer the completed units to finished goods.
2. Explain briefly how the variances might be handled on the financial statements.

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Actual Standard Costs Costs Variances Materials Labor $147,300 $146,900 Price: $910 favorable Quantity: $1,310 unfavorable 81,000 81,150 Rate: $250 unfavorable Efficiency: $400 favorable Manufacturing Overhead 46.625 46,300 Volume: $450 unfavorable Efficiency: $355 favorable Spending: $230 unfavorable