(Appendix 10A) Journal Entries Journal Instructions Chart of Accounts X Instructions Deporte Company produces single-colored t-shirts. Materials for the shirts are dyed in large VEts. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established: Journal Direct materials (2.8 lbs.@$0.80 $2.24 Direct labor (0.75 hr@ $7.8) 5.85 10 $8.09 3Standard prime cost 1 13 During the year, 79,300 pounds of material were purchased and used for the changeover activily. There were 26,000 batches produced, with the following actual prime costs: 14 Direct materials $50,946 Direct labor (for 19,457 hrs.) $149.386 Required: 1. Prepare a jounal entry on Dec. 31 for he purchase of raw materials. Record the transaclion as a compound entry. 2. Prepare a jounal entry on Dec. 31 far the issuance of raw matenials. Record the transaction as a campound entry. 3. Prepare a oumal entry on Dec. 31 for the addition of labor to Work in Process. Record the fransaction as a compound entry variances to Cost of Goods Sold. Rocord the bransaction as a compound entry 4. Prepare a jounal entry on Dec. 31 for the closing Chart of Accounts ASSETS REVENUE 110 Cash 410 Sales 120 Accounts Receivable EXPENSES 131 Supplies 510 Cost of Goods Sold 132 Prepaid Insurance 511 Materials Price Variance 141 Materials 512 Materials Usage Variance 142 Work in Process 513 Labor Efficiency Variance 143 Overhead Control 514 Labor Rate Variance 144 Finished Goods 520 Insurance Expense 170 Land 530 Wages Expense 180 Equipment 540 Supplies Expense 181 Accumulated Depreciation 550 Utilities Expense LIABILITIES 560 Depreciation Expense 210 Accounts Payable 590 Miscellaneous Expense 220 Accrued Payroll 230 Utilities Payable 240 Lease Payable EQUITY 310 Common Stock 320 Retained Earnings