Chemical Incorporated. has set the following standards for direct materials and direct labor for each 20-pound bag of Weed-Be-Doom:

	Per Bag
Direct materials: 25 pounds XF2000 @ $0.23/pound	$ 5.75
Direct labor: 0.20 hour @ $30/hour	6.00

The firm manufactured 100,000 bags of Weed-Be-Doom in December and used 2,700,000 pounds of XF2000 and 20,395 direct labor hours. During the month, the firm purchased 3,000,000 pounds of XF2000 at $0.150 per pound and incurred a total payroll of $713,825 for direct labor. The firm records purchases at standard cost and therefore recognizes the direct materials price variance at point of purchase.

1. Prepare journal entries to record the preceding events.

A

B

C

Journal entry worksheet Purchased 3,000,000 pounds of XF2000 at $0.150 per pound. Note: Enter debits before credits. Journal entry worksheet Issued 2,700,000 pounds of XF2000 for the production of 100,000 bags of Weed-Be-Doom. Note: Enter debits before credits. Journal entry worksheet Direct labor wages for the manufacturing of 100,000 bags of Weed-Be-Doom for 20,395 hours. Note: Enter debits before credits