Refer to the information in E10-6 regarding Lucky Charm Company.

Required:

Prepare journal entries to record Lucky Charm’s January direct materials and labor transactions.

Data from E10-6

Lucky Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adorned with two crystals of various colors. Standard costs follow:

During the month of January, Lucky Charm made 1,500 charms. The company used 350 ounces of silver (total cost of \($7,350)\) and 3,050 crystals (total cost of \($701.50),\) and paid for 2,400 actual direct labor hours (cost of \($34,800).\)

Transcribed Image Text:

Standard Quantity Standard Price (Rate) Standard Unit Cost Direct costs Silver 0.25 oz. $20.00 per oz. Crystals 2 Direct labor 1.5 hrs. 15.00 per hr. 0.25 per each $ 5.00 0.50 22.50