Hareem Company uses a standard cost system and reports the following information and variances for 2025: View the information. View the variances. Hareem Company produced 1,000 units of finished product in 2025. Read the requirements. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Requirements Record the journal entries for direct materials, direct labor, variable overhead, and fixed overhead, assuming all expenditures were on account and there were no beginning or ending balances in the inventory accounts (all materials purchased were used in production, and all goods produced were sold). Record the journal entries for the transfer to Finished Goods Inventory and Cost of Goods Sold (omit the journal entry for Sales Revenue). Record the journal entry to adjust the Manufacturing Overhead account. Variances Direct materials cost variance $135 U Direct materials efficiency variance 300 F Direct labor cost variance 750 F Direct labor efficiency variance 9,250 F Variable overhead cost variance 1,100 U Variable overhead efficiency variance 1,100 F Fixed overhead cost variance 300 U Fixed overhead volume variance 2,100 F Information Standards: Actual: 3 yards of cloth per unit at $1.00 per yard 2 direct labor hours per unit at $18.50 per hour Overhead allocated at $3.00 per direct labor hour 2,700 yards of cloth were purchased at $1.05 per yard Employees worked 1,500 hours and were paid $18.00 per hour Actual variable overhead was $2,400 Actual fixed overhead was $1,800 Begin by journalizing the purchase of direct materials on account, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit |(1) (2) (3) (4) (5) Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry.) Date (6) (7) (8) |(9) (10) Accounts and Explanation Debit Credit Journalize the incurrance and assignment of direct labor costs, including the related variances. (Prepare a single compound journal entry.) Date (11) (12) (13) (14) (15) Accounts and Explanation Debit Journalize the entry to show the actual manufacturing overhead costs incurred. Date (16) ||(17) (18) (19) (20) Accounts and Explanation Credit Debit Credit Record the overhead allocated to Work-in-Process Inventory. Date (21) (22) (23) (24) (25) Accounts and Explanation Journalize the movement of all production from Work-in-Process Inventory. Date (26) (27) (28) (29) (30) Accounts and Explanation Record the entry to transfer the cost of sales at standard cost. Date Accounts and Explanation (31) (32) (33) (34) Debit Credit Debit Credit Debit Credit (35) Journalize the adjusting of the Manufacturing Overhead account. (Prepare a single compound journal entry.) Date (36) |(37) |(38) (39) (40) (41) Accounts and Explanation Debit Credit