Instructions 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 1 Direct labor (0.65 hr. @ $7.4) 481 3 Standard prime cost $7.05 During the year, 85,400 pounds of material were purchased and used for the changeover activity. There were 28,000 batches produced, with the following actual prime costs: Direct materials $54,865 Direct labor (for 18,153 hrs.) $132, 113 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. ASSETS REVE 110 Cash 410 Sales 120 Accounts Receivable 131 Supplies EXPENSES 132 Prepaid Insurance 510 Cost of Goods Sold 141 Materials 511 Materials Price Variance 142 Work in Process 512 Materials Usage Variance 143 Overhead Control 513 Labor Efficiency Variance 144 Finished Goods 514 Labor Rate Variance 170 Land 520 Insurance Expense 180 Equipment 530 Wages Expense 181 Accumulated Depreciation 540 Supplies Expense 550 Utilities Expense LIABILITIES 560 Depreciation Expense 210 Accounts Payable 590 Miscellaneous Expense 220 Accrued Payroll 230 Utilities Payable 240 Lease Payable EQUITY 180 Equipment 530 Wages Expense 181 Accumulated Depreciation 540 Supplies Expense 550 Utilities Expense LIABILITIES 560 Depreciation Expense 210 Accounts Payable 590 Miscellaneous Expense 220 Accrued Payroll 230 Utilities Payable 240 Lease Payable EQUITY 310 Common Stock 320 Retained Earnings