norrnaI versus standing eost, journal entries This is a eontinuation of the Simple Manufaeturing Company, problem 5 in Chapter 6. Simple now employs standard, fulI eosting. Suppose the following LLAs are estimated:

direet labor: DL$ = 24q;

direet material: DM$ = 6q; and overhead: OV = 40,000 + 3DLH.

The direet labor LLA refleets an underlying labor standard of 3 hours per unit.

Normal volume is q = 6,667 (whieh implies DLH = 20,000). Produetion totaled q

= 10,000 units, and aetual eosts are as noted in the originaI problem.

Give journal entries to reeord the aetual eosts, allocation of overhead to work in proeess, transfer of the eompleted units from work in proeess to finished goods, and the c10sing of all temporary aeeounts, refleeting the differenee between aetual and standard eosts, to eost of goods sold.

AppendixLO1