Benjapond Company uses a standard cost accounting system and estimates production

for the year to be 80,000 units. At this volume, the company's variable overhead costs are $0.50 per

direct labor hour.

The company's single product has a standard cost of $25.00 per unit. Included in the $25.00 is

$10.20 for direct materials (3 yards) and $10.00 of direct labor (2 hours). Production information for

the month of March follows: (16 Points)

Number of units produced 6,000

Materials purchased (18,500 yards) $66,000

Materials used in production (yards) 18,000

Variable overhead costs incurred $6,320

Fixed overhead costs incurred $20,200

Direct labor cost incurred ($6.50/hour) $75,000

Required:

Prepare the journal entries to record the following:

a. Incurring actual overhead.

b. only overhead applied (variable and fixed) to production.

c. finished goods produce.