Guard, which uses a standard cost accounting system, manufactured

180,000

boat fenders during the year, using

1,540,000 feet

of extruded vinyl purchased at

$1.35

per foot. Production required

4,800

direct labor hours that cost

$12.00

per hour. The materials standard was

8

feet of vinyl per fender at a standard cost of

$1.50

per foot. The labor standard was

0.027

direct labor hour per fender, at a standard cost of

$11.50

per hour.

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Part 1

Requirement 1. Make the journal entries to record the purchase and use of direct materials. (Record debits first, then credits. Explanations are not required. Record both direct labor variances by preparing a single compound entry. Abbreviations used: DM = Direct materials, DL = Direct labor)

Begin with the entry to record the purchase of materials.

Journal Entry
Date	Accounts	Debit	Credit

- X Variances Direct materials price variance Direct materials quantity variance Direct labor rate variance Direct labor efficiency variance $231,000 F $150,000 U $2,400 U $690 F - X Requirements 1. Make the journal entries to record the purchase and use of direct materials. 2. Make the journal entries to record the direct labor