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Barrie Company manufactures a line of clothing. At the beginning of the period, there were 1,000 units in finished goods inventory at a standard variable

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Barrie Company manufactures a line of clothing. At the beginning of the period, there were 1,000 units in finished goods inventory at a standard variable manufacturing cost of $400 per unit and a standard full absorption cost of $450 per unit. Also, Barrie had a beginning direct materials inventory consisting of 300 units at the current standard cost per unit of $55. Barrie uses a standard cost accounting system and enters standard costs into its accounting records. Barrie accounts for all of its inventories using a FIFO cost flow assumption. The standards and activity that were established at the beginning of the accounting period are attached During the period. 2,200 units were produced and 1,800 were sold. The selling price per unit was $750. The actual costs incurred during the period are attached. Manufacturing overhead is applied on the basis of direct labor hours. Direct materials price variances are recorded at the time of purchase. Barrie uses a perpetual inventory system for all inventories. Assume that all sales and payments are in cash. The company had no beginning or ending work in process inventories. REQUIRED: (1) (2) Prepare all general journal entries, in proper form, for Barrio Company for the current period based upon the above information. Provide a brief explanation for each entry made. Round all calculations to the nearest whole dollar, Prepare the calculations to prorate the variances for Barrie Company to the appropriate accounts, using the ending balances in the appropriate accounts to do the proration. Prepare general journal entries, in proper form, to enter the prorations into the accounting records. Omit explanations. Round all percentages to two decimal places (four decimal places in all) and all other dollar amounts to the nearest whole dollar. BARRIE COMPANY STANDARDS AND ESTIMATED ACTIVITY FOR UPCOMING PERIOD Units Produced and Sold 2,000 Standard Cost Per Unit: Direct Materials (3 units at $55 per unit) S 165 Direct Labor (10 hours at S20 per hour) s 200 Manufacturing Overhead (60% Variable) S 100 364,800 ? BARRIE COMPANY ACTUAL RESULTS FOR THE CURRENT PERIOD Direct Materials Purchases (6,400 units at $57 per unit) s Direct Materials Used (6,700 units) Direct Labor (21,800 hours) Variable Manufacturing Overhead Fixed Manufacturing Overhead 446.900 139,000 87.000

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