26-06A a-d (Video) Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,000 units follows. Direct materials 3 pounds at $1.10 per pound $3.30 Direct labor Overhead 1.10 hour at $10.00 per hour 11.00 2 hours (variable $4.30 per machine hour; fixed $3.20 per machine hour) 15.00 Standard cost per unit $29.30 Normal capacity for the month was 4,060 machine hours. During January, the following transactions applicable to Job No. 12 occurred. 1. Purchased 3,200 pounds of raw materials on account at $1.15 per pound. Requisitioned 3,200 pounds of raw materials for Job No. 12. 2. 3. Incurred 1,150 hours of direct labor at a rate of $9.90 per hour. 4. Worked 1,150 hours of direct labor on Job No. 12. S. Incurred manufacturing overhead on account $16,600. 6. Applied overhead to Job No. 12 on basis of standard machine hours allowed. 7. Completed Job No. 12. 8. Billed customer for Job No. 12 at a selling price of $95,000. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit L. Raw Materials Inventory 3520 Materials Price Vanance Accounts Payable 160 3680 2. Work in Process Inventory 3300 Materials Quantity Vacance Journalize the transactions. (Credit account titles are automatically indented when amount is No. Account Titles and Explanation 1. Raw Materials Inventory Materials Price Variance Debit Credit 3520 160 3680 Accounts Payable 3300 2. Work in Process Inventory Materials Quantity Variance 220 3520 Raw Materials Inventory 3. Factory Labor 12650 Labor Price Variance 1265 Factory Wages Payable 11385 4. Work in Process Inventory 11000 Labor Quantity Variance 1650 Factory Labor 12650 5. Manufacturing Overhead 16600 Accounts Payable 16600 6. Work in Process Inventory 15000 Manufacturing Overhead 1500 7. Finisha Manufacturing Overhead 7. Finished Goods Inventory 29300 Work in Process Inventory 8. Accounts Receivable 95000 Sales Revenue (To record sales.) Cost of Goods Sold Finished Goods Inventory (To record cost of goods sold.) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT 29300 15000 29300 95000 29300 Post to the job order cost accounts. (Post entries in the order of journal entries presented in the Raw Materials Inventory (1)~ 3520 (2) 3520 Factory Labor (3)~ 12650 (4) 12650 Manufacturing Overhead (5) 16600 (6) S 15000 Materials Price Variance Post to the job order cost accounts. (Post entries in the order of journal entr Raw Materials Inventory (1)~ 3520 (2) 3520 Factory Labor (3) 12650 (4) 12650 (5) (1) (2) (3) (4) Manufacturing Overhead 16600 (6) Materials Price Variance 160 Materials Quantity Variance 220 Labor Price Variance 1265 Labor Quantity Variance 1650 Work in Process Inventory (2) 3300 (4) 11000 15000 Finished Goods Inventory 15000 (2) v 3300 > (4) (6) (7) 11000 15000 Finished Goods Inventory 29300 Cost of Goods Sold (8) 29300 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the entry to recognize the total overhead variance. (Credit account titles are automatic Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the January 2020 income statement for management. Assume selling and administrative expenses were $3,900. JORGENSEN CORPORATION Income Statement SHOW LINT OF ACCOUNTS LINK TO TEXT LINK 10 TEXT LINK TO TEXT LINK TO TEXT