Comparison of General-Ledger Entries for Direct Materials and Direct Labor The Sweeney Co. has the following data for the month of March, when 1,100 fin- ished units were produced:

Direct materials used, 3,600 pounds. The standard allowance per finished unit is 3 pounds at $3.00 per pound. Five thousand pounds were purchased at $3.25 per pound, a total of $16,250.

Direct labor, actual hours, was 2,450 hours at a total cost of $9,800. The standard labor cost per finished unit was $7.60. Standard time allowed is 2 hours per unit.
. Prepare journal entries for a “normal’-cost system.
. Prepare journal entries for a “‘standard’’-cost system. Support your entries with a detailed variance analysis, using the columnar analytical format illustrated in the chapter.
. Show an alternate approach, including journal entries, to the way you quanti-
_fied the material price variance in 2. Which way is better, and why? lop4