1. Show how the accounting for the following events would be done in the accounting records of the Tonetone division of Sill Co:

In a past year, Tonetone Division build 1,000 units of one model of fan. The standard and actual direct material was $20 per unit. The standard cost for a direct labor hour was $8.00.

The actual direct labor hours used were 400, and the workers were paid an average hourly rate of $10 (including incentives) because the average direct labor efficiency rate was 300%( so the standard direct labor hours were 1,200.

The overhead rate in the plant was 150%.

Over the course of the year, 500 units were sold at a price of $60 each. At year end, a physical inventory was taken. The count revealed 400 good units left in inventory, and they were valued at an average cost of $30 each.