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: 2.70 hours at $32.00 per hour Direct materials: 2.70 gallons at $17.00 per gallon $ 86.40 $ 45.90 During December of the current year, Boron produced a total of 2,570 gallons of output and incurred the following direct manufacturing costs: Direct labor: 6,800 hours worked at an average wage rate of $20.20 per hour Direct materials: Purchased: 7,400 gallons @ $17.45 per gallon Used in production: 7,000 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 $220 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 Transaction General Journal 01 Direct materials inventory 2 02 Direct materials purchase-price variance Accounts payable Work-in-process inventory Direct materials usage variance Debit Credit 125,800 3,330 129,130 117,963 11,167 129,130 Direct materials inventory 3 03 Work-in-process inventory Direct labor rate variance Direct labor efficiency variance Accrued Payroll 222,048 80,240 4,448 137,360 4 04 Finished goods inventory Work-in-process inventory 340,011 340,011 5 5(a) Cost of goods sold 304,290 Finished goods inventory 304,290 6 5(b) Accounts receivable Sales revenue 506,000 506,000