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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
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: hours at $ per hour Direct materials: gallons at $ per gallon $ $ During December of the current year, Boron produced a total of gallons of output and incurred the following direct manufacturing costs: Direct labor: hours worked at an average wage rate of $ per hour Direct materials: Purchased: gallons @ $ per gallon Used in production: gallons Boron records price variances for materials at the time of purchase. Required: Prepare journal entries for the following events and transactions. Purchase, on credit, of direct materials. Direct materials issued to production. Direct labor cost of units completed this period. Direct manufacturing cost direct labor plus direct materials of units completed and transferred to Finished Goods Inventory. Sale on credit for $ per gallon, of gallons of output. Hint: You will need two journal entries here. For all requirements, if no entry is required for a transactionevent select No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount. View transaction list Journal entry worksheet Purchase, on credit, of direct materials. Note: Enter debits before credits.
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: hours at $ per hour
Direct materials: gallons at $ per gallon
$
$
During December of the current year, Boron produced a total of gallons of output and incurred the following direct manufacturing costs:
Direct labor: hours worked at an average wage rate of $ per hour
Direct materials:
Purchased: gallons @ $ per gallon
Used in production: gallons
Boron records price variances for materials at the time of purchase.
Required:
Prepare journal entries for the following events and transactions.
Purchase, on credit, of direct materials.
Direct materials issued to production.
Direct labor cost of units completed this period.
Direct manufacturing cost direct labor plus direct materials of units completed and transferred to Finished Goods Inventory.
Sale on credit for $ per gallon, of gallons of output. Hint: You will need two journal entries here.
For all requirements, if no entry is required for a transactionevent select No journal entry required" in the first account field. Round
your answers to the nearest whole dollar amount.
View transaction list
Journal entry worksheet
Purchase, on credit, of direct materials.
Note: Enter debits before credits.
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