Assume Cook writes off all variances to Cost of Goods Sold. Prepare the entries Cook would make to record and close out the variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the purchase and use of 126,500 hours of direct labor at an actual cost of $3,807,500 and the transfer to work in process at a standard cost of $33 per hour. Note: Enter debits before credits. Event General Journal Debit Credit 1 Work-in-process inventory 4,174,500 Finished goods inventory 4,174,500