Davis, Managerial Accounting, 2e MANAGERIAL ACC (Acctg2 CALCULATOR MESSAGE MY INSTRUCTOR STANDARD VIEW PRINTER VERSION BACK NEX Problem T4-11 Water Movers, Inc. is known throughout the world for its H20-X high-capacity water pump, used in Irrigation systems. The company uses a standard costing system, and the pump's standard cost is as follows. The company's predetermined fixed overhead rate is based on an expected capacity of 76,200 direct labor hours per month Price $6 per pound Standard Standard Standard uantit 16 pounds DIrect materlals Direct labor Variable overhead Fixed overheac $8 per DLH $9 per DLH $4 per DLH 3 DLH 3 DLH 3 DLH Cost 596 24 27 12 $159 During the month of September, the company produced 22,200 of the 25,400 pumps that had been scheduled for production In the budget. The company used 410,100 pounds of materlal during September. The direct labor payroll for the month was $665,460 for 73,940 direct labor hours. Variable overhead costs were $654,260; fixed overhead costs were $353,000 The company's purchasing agent signed a new supply contract that resulted in purchases of 491,000 pounds of direct materials at a price of $2,651,400 on account. (a) Prepare the Journal entries to record the purchase and use of direct materials during September. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Tiles and Explanation Debit Credit (To record the purchase of material) 2. (To record the use of material) (b) Prepare the journal entry to record the direct labor payroll for September. All wages due to employees have been paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit