Journal entries for materials and labor variances Karl Corp, which uses a standard cost accounting system, determines that the following variances arose in production during June: Direct materials purchases totaled $90.000 at standard cost, while $75,000 in materials were taken from inventory for use in production Actual direct labor touted $80,000. while actual overhead incurred was $60,000. (Assume no variance for factory overhead.) Ten thousand units were transferred to Finished . Goods at a standard cost of $15 per unit. Prepare the journal entries to record The purchase of materials (The materials price variance is recorded at the time of purchase ) The use of materials in production The use of labor in production The charging of overhead to production The transfer of finished goods to the storeroom