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: 2 hours at $25.00 per hour Direct materials: 2 gallons at $10.00 per gallon $ 50.00 $ 20.00 During December of the current year, Boron produced a total of 2,500 gallons of output and incurred the following direct manufacturing costs: Direct labor: 4,900 hours worked at an average wage rate of $19.50 per hour Direct materials: Purchased: 6,000 gallons $10.45 per gallon Used in production: 5,100 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 $150.00 per gallon, of 2,000 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 transaction list Journal entry worksheet > < 1 2 3 4 5 6 Purchase, on credit, of direct materials. Note: Enter debits before credits. Transaction 01 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet > 3 4 5 6 Direct materials issued to production. Note: Enter debits before credits. Transaction 02 General Journal Debit Credit Record entry Clear entry View general journal ces Journal entry worksheet < 1 2 4 5 6 > Direct labor cost of units completed this period. Note: Enter debits before credits. Transaction 03 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 2 3 D 5 6 Direct manufacturing cost (direct labor plus direct materials) of units completed and transferred to Finished Goods Inventory. Note: Enter debits before credits. Transaction 04 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 Record the cost of goods sold for the sale. Note: Enter debits before credits. Transaction 5(a) 6 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < 1 2 3 4 5 Record the sale on account. Note: Enter debits before credits. Transaction 5(b) General Journal Debit Credit Record entry Clear entry View general journal > < Prev 10 of 10 Next >