Salvatore Company has the following standards for its single product: direct materials—2 yards at

$.52 per yard; direct labor—2 hours at $5.00 per hour; and factory overhead—2 hours at $1.75 per hour. The company produced 7,600 units. The direct material purchases amounted to 25,000 yards at $.50 per yard; 12,000 yards of direct materials were requisitioned. mk5 Required:

Prepare the necessary journal entries for direct materials assuming that the Direct Materials Inventory account was maintained at a Actual cost b Standard cost