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Boron Chemical Company produces a synthetic resin that is used in the automotive industry. The company uses a standard cost system For each gallon of

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Boron Chemical Company produces a synthetic resin that is used in the automotive industry. The company uses a standard cost system For each gallon of output, the following direct manufacturing costs are anticipated: Direct labor: 3.78 hours at $25.00 per hour Direct materials: 3.70 gallons at $21.00 per gallon $92.5e $77.70 During December of the current year, Boron produced a total of 2,670 gallons of output and incurred the following direct manufacturing costs. Direct labor: 9,750 hours worked at an average wage rate of $21.20 per hour Direct materials: Purchased: 11,000 gallons @ $21.45 per gallon Used in production: 10,898 gallons Boron records price variances for materials at the time of purchase. Required: Prepare journal entries for the following events and transactions, 1. Purchase, on credit of direct materials 2. Direct materials issued to production 3. Direct labor cost of units completed this period. 4. Direct manufacturing cost (direct labor plus direct materials) of units completed and transferred to Finished Goods Inventory. 5. Sale (on credit), for $320 per gallon, of 2,300 gallons of output. (Hint: You will need two journal entries here.) (For all requirements, if no entry is required for a transaction/event, select "No journal entry required" in the first account field Round your answers to the nearest whole dollar amount.) View transaction list View journal entry worksheet No Debit Credit Transaction 01 1 General Journal Direct materials inventory Direct materials purchase price variance Accounts payable 231,000 4,950 235,950 2 02 207,459 Work in process inventory Direct materials usage variance Direct materials inventory 3 03 246,975 Work-in-process inventory Direct labor rate variance Direct labor efficiency variance Accrued Payroll 4 04 Finished goods inventory Work-in-process inventory 3 03 246,975 Work-in-process inventory Direct labor rate variance Direct labor efficiency variance Accrued Payroll 4 04 Finished goods inventory Work-in-process inventory 5 5(a) Cost of goods sold Finished goods inventory 6 5(b) Accounts receivable 736,000 Sales revenue 736.000

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