1. Provide the journal entry for the purchase of the propylene glycol. Assume the quantity purchased is equal to the quantity used in production.

2. Provide the journal entry for the release of propylene glycol to production.

3. Provide the journal entry for efficiency and spending variances for DL.

4. Provide the journal entries for fixed manufacturing OH variances.

5. What is the standard manufacturing cost per gallon for Detergent XZ?

Standard cost of Detergent XZ per gallon

6. What is the actual manufacturing cost per gallon for detergent XZ?

Actual cost of Detergent XZ per gallon

Problem #1: Standard Costing (show your work, do not simply hard code an answer into the designated box, unless instructed You were recently hired as a cost accountant for Procter & Gamble, a manufacturer of household products. The firm uses a standard cost system to control costs. One of the products manufactured is Detergent XZ which is a leading laundry detergent in the US. The main ingredient in Detergent XZ that helps the washing process work better is propylene glycol. The ingredient is purchased as a dry powder and mixed with water to produce the final product, which is sold in one-gallon containers. Standard Actual production and sales (gallons of detergent) 1,525,000 1,690,000 propylene glycol used (pounds) 800,000 850,000 propylene glycol (total cost in $$) $1,000,000 $1,037,000 total DL cost $2,000,000 $1,825,000 total DL hours incurred 66,667 61,655 fixed manufacturing OH incurred $1,475,000 $1,527,000