Refer to the data in Exercise 10-31, regarding Canandaigua Container Company. Prepare journal entries to: 

1. Record the purchase of direct material on account.
2. Add direct-material and direct-labor cost to Work-in-Process Inventory.
3. Record the direct-material and direct-labor variances.
4. Close these variances into Cost of Goods Sold.

Data From Exercise 10-31:-

Canandaigua Container Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller.

Actual material purchases amounted to 240,000 kilograms at \($.62\) per kilogram. Actual costs incurred in the production of 50,000 units were as follows:

Transcribed Image Text:

Direct labor: Quantity, .25 hour Rate, $12 per hour Direct material: Quantity, 4 kilograms Price, $.60 per kilogram