Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 2,000 units of Product B was received. The standard cost of one unit of Product B is as follows.

Direct materials		3 pounds at $1.10 per pound		$3.30
Direct labor		1.10 hour at $9.00 per hour		9.90
Overhead		2 hours (variable $4.30 per machine hour; fixed $3.40 per machine hour)		15.40
Standard cost per unit				$28.60

Normal capacity for the month was 4,340 machine hours. During January, the following transactions applicable to Job No. 12 occurred.

1.		Purchased 6,800 pounds of raw materials on account at $1.17 per pound.
2.		Requisitioned 6,800 pounds of raw materials for Job No. 12.
3.		Incurred 2,300 hours of direct labor at a rate of $8.95 per hour.
4.		Worked 2,300 hours of direct labor on Job No. 12.
5.		Incurred manufacturing overhead on account $32,690.
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 $150,000.

Journalize the transactions.

No. Account Titles and Explanation Debit Credit 1. Raw Materials Inventory 7480 Materials Price Variance Accounts Payable 2. Work in Process Inventory 660011 Materials Quantity Variance Raw Materials Inventory 7480 3. Factory Labor Labor Price Variance 115 Factory Wages Payable 20585 4. Work in Process Inventory 198001 Labor Quantity Variance Factory Labor 20700 5. Manufacturing Overhead Accounts Payable 32690 6. LPLPLP5- Work in Process Inventory 30800|| Manufacturing Overhead 30800 7. Finished Goods Inventory 57200 | Work in Process Inventory 57200 8. Accounts Receivable 150000|| Sales Revenue T 150000 (To record sales.) Cost of Goods Sold Finished Goods Inventory 57200 (To record cost of goods sold.) Post to the job order cost accounts. (Post entries in the order o Raw Materials Inventory 7(1): 7480|(2) 8 1 7480] Factory Labor 7(3): 20700 (4) 20700 Manufacturing Overhead 765) 3269011 (6) 30800 Materials Price Variance Materials Quantity Variance Labor Price Variance 7(1): 1 476121 (2): 1 0121 Joa 2115 ta: 2017 7(2): 1 65007 (7): 7481 198001 7(6): 3080072 Labor Quantity Variance Work in Process ventory 57200 30800 Finished Goods Inventory 9(7): 572007 (8) 3T 57200 Cost of Goods Sold 7: 572010 O Prepare the entry to recognize the total overhead variance. (Credit account titles are automatically indented when amount is entere indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare the January 2020 income statement for management. Assume selling and administrative expenses were $2,300. JORGENSEN CORPORATION Income Statement For the Month Ended January 31, 2020 Sales Revenue Tcost of Goods Sold TGross Profit (at Standard) Variances Materials Price Variance Unfavorable ole Materials Quantity Variance Unfavorable Factory Labor T Favorable T Unfavorable Unfavorable TGross Profit (Actual) Selling and Administrative Expenses | Net Income / (Loss)