Bechtel Technical Clothing produces parkas used by arctic explorers, mountain climbers, and people living in Minnesota. The company uses a standard costing system, and standards call for 2.5 yards of material at $54 per yard for each parka. The standard cost for labor is 3.4 hours at $34 per hour. Standard overhead is $14 per unit. For the year 2015, expected production is 7,900 parkas with fixed overhead of $51,000 and variable overhead of $6.1 per parka. During 2015, 8,500 parkas were manufactured. The company purchased 23,600 yards of material at a cost of $1,345,200. Production required 22,200 yards of material. The cost of direct labor was $1,040,000 for 27,700 hours. Actual overhead for the year was $86,300. All purchases are on account.

a. Prepare a journal entry to record the purchase of material. (DONE)

b. Prepare a journal entry to record material used in production.

c. Prepare a journal entry to record direct labor.

d. Prepare a journal entry to record actual overhead and overhead applied.

e. Prepare a journal entry to close the variances in requirements a through d to Cost of Goods Sold.

(b) Your answer is partially correct. Try again. Prepare a journal entry to record material used in production. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Work in Process Inventory 1147500 Material Quantity Variance 75600 Raw Materials Inventory 1223100 (To record the use of raw material)