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 Reardon Company during July 19X1 are given on page 476.

During the month, a total of 910 units with a standard cost of $548.70 each were completed and transferred to finished goods.
Instructions 1. Give general journal entries dated July 31, 19X1, to record the following. (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 Materials Labor Manufacturing Overhead Costs Costs $294,600 $293,800 162,000 162,300 Variances Price: $1,820 favorable Quantity: $2,620 unfavorable Rate: $500 unfavorable Efficiency: $800 favorable 93,250 92,600 Volume: $900 unfavorable Efficiency: $710 favorable Spending: $460 unfavorable