10. Deluxe Company uses a standard cost system and reports the following information for 2018: (Click the icon to view the information.) Deluxe Company reported the following variances: 2 (Click the icon to view the variances.) Deluxe produced 1,000 units of finished product in 2018. Read the requirements Begin by journalizing the purchase of direct materials on account, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (1) (2) (3) (4) (5) Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (6) (7) (8) (9) (10) Journalize the incurrance and assignment of direct labor costs, including the related variances. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (11) (12) (13) (14) (15) Journalize the entry to show the actual manufacturing overhead costs incurred. Date Accounts and Explanation Debit Credit (16) (17) (18) (19) (20) Record the overhead allocated to Work-in-Process Inventory. Date Accounts and Explanation Debit Credit (21) (22) (23) (24) (25) Debit Credit Journalize the movement of all production from Work-in-Process Inventory. Date Accounts and Explanation (26) (27) (28) (29) (30) Debit Credit Record the entry to transfer the cost of sales at standard cost. Date Accounts and Explanation (31) (32) (33) (34) (35) Journalize the adjusting of the Manufacturing Overhead account. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (36) (37) (38) (39) (40) (41) 1: Data Table Standards: 3 yards of cloth per unit at $1.25 per yard 2 direct labor hours per unit at $10.25 per hour Overhead allocated at $6.00 per direct labor hour Actual: 2,700 yards of cloth were purchased at $1.30 per yard Employees worked 1,900 hours and were paid $9.75 per hour Actual variable overhead was $2,200 Actual fixed overhead was $7,600 2: Data Table $135 U Direct materials cost variance Direct materials efficiency variance 375 F Direct labor cost variance 950 F 1,025 F 1,600 U Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency variance Fixed overhead cost variance Fixed overhead volume variance 1,600 F 200 U 2,400 F 3: Requirements Record the journal entries to record direct materials, direct labor, variable overhead, and fixed overhead, assuming all expenditures were on account and there were no 3: Requirements Record the journal entries to record direct materials, direct labor, variable overhead, and fixed overhead, assuming all expenditures were on account and there were no beginning or ending balances in the inventory accounts (all materials purchased were used in production, and all goods produced were sold). Record the journal entries to record the transfer to Finished Goods Inventory and Cost of Goods Sold (omit the journal entry for Sales Revenue). Adjust the Manufacturing Overhead account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
