Journal Entries under Standard Costing (Appendix), Posting Journal Entries for Variances (Appendix) (LO 10-6, 10.9) [The following information applies to the questions displayed below) Saskatewan Can Company manufactures recyclable soft drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Material: Quantity, 0.26 hour Quantity, 5 kilograms Rate, $13.00 per hour Price, 50.62 per kilogram Direct Labor: Actual material purchases amounted to 243,600 kilograms at $0.650 per kilogram. Actual costs incurred in the production of 42,000 units were as follows: Direct labor: Direct material: $160,776 for 12, 180 hours $141,960 for 218,480 kilograms Journal entry worksheet Record the purchase of direct material on account and the direct-material purchase price variance. Note: Enter debits before credits. Transaction Debit Credit 1 General Journal Raw-material inventory Direct-material purchase price variance Accounts payable Journal entry worksheet Record the addition of direct-material cost to work-in-process inventory and the direct-material quantity variance. Note: Enter debits before credits. Debit Credit Transaction 2 General Journal Work-in-process inventory Direct-material quantity variance Raw-material inventory Journal entry worksheet