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 Labor:	Direct Material:
Quantity, 0.21 hour	Quantity, 4 kilograms
Rate, $10.50 per hour	Price, $0.52 per kilogram

Actual material purchases amounted to 185,600 kilograms at $0.60 per kilogram. Actual costs incurred in the production of 32,000 units were as follows:

Direct labor:	$77,088 for 7,040 hours
Direct material:	$85,440 for 142,400 kilograms

Prepare the following journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

1.)Record the purchase of direct material on account and the direct-material purchase price variance.

2.)Record the addition of direct-material cost to work-in-process inventory and the direct-material quantity variance.

3.)Record the addition of direct-labor cost to work-in-process inventory and the direct-labor variances.

4.)Record the addition of direct-labor cost to work-in-process inventory and the direct-labor variances.