Deporte Company produces single-colored t-shirts. Materials for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established:

1 Direct materials (2.8 lbs. @ $0.80) $2.24

2 Direct labor (0.75 hr. @ $7.8) 5.85

3 Standard prime cost $8.09

During the year, 79,300 pounds of material were purchased and used for the changeover activity. There were 26,000 batches produced, with the following actual prime costs:

Direct materials $50,946

Direct labor (for 19,457 hrs.) $149,386

Required:

1. Prepare a journal entry on Dec. 31 for the purchase of raw materials. Record the transaction as a compound entry.

2. Prepare a journal entry on Dec. 31 for the issuance of raw materials. Record the transaction as a compound entry.

3. Prepare a journal entry on Dec. 31 for the addition of labor to Work in Process. Record the transaction as a compound entry.

4. Prepare a journal entry on Dec. 31 for the closing of variances to Cost of Goods Sold. Record the transaction as a compound entry.