Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,000 units of Product B was received. The standard cost of one unit of Product B is as follows. Direct materials 3 pounds at $1.30 per pound $3.90 Direct labor 1.10 hour at $8.00 per hour 8.80 Overhead 2 hours (variable $4.00 per machine hour; fixed $3.30 per machine hour) 14.60 Standard cost per unit $27.30 Normal capacity for the month was 4,010 machine hours. During January, the following transactions applicable to Job No. 12 occurred. 1. Purchased 3,100 pounds of raw materials on account at $1.36 per pound. 2. Requisitioned 3,100 pounds of raw materials for Job No. 12. 3. 4. Worked 1,180 hours of direct labor on Job No. 12. Incurred 1,180 hours of direct labor at a rate of $7.95 per hour. 5. Incurred manufacturing overhead on account $15,880. 6. Applied overhead to Job No. 12 on basis of standard machine hours allowed. 7. Completed Job No. 12. 8. Billed customer for Job No. 12 at a selling price of $90,000. 1. Raw Materials Inventory 3100 Materials Price Varlance Accounts Payable 2. Work In Process Inventory Materials Quantity Varlance Raw Materials Inventory 3. Factory Labor Labor Price Varlance Factory Wages Payable 4. Work In Process Inventory Labor Quantity Varlance Factory Labor 5. Manufacturing Overhead Accounts Payable 6. Work In Process Inventory Manufacturing Overhead 7. Finished Goods Inventory Work In Process Inventory 8. Accounts Receivable Sales Revenue (To record sales.) Cost of Goods Sold Finished Goods Inventory (To record cost of goods sold.)