P10.37 Variances; process costing; journal entries: manufacturer LO 10.5, 10.110 Office Magic Ltd manufactures ergonomic office equipment. The standard cost for material and labour is $190 per unit. This includes 8 kilograms of direct material at a standard cost of $5 per kilogram, and 6 hours of direct labour at $25.00 per hour. The following data relate to November: work in process inventory, 1 November: none work in process inventory, 30 November: 800 units (75 per cent complete as to labour; material is issued at the beginning of processing) units completed: 5 600 units purchase of materials: 50 000 kilograms for $249 250 total actual labour costs: $917 000 I actual labour hours: 36 500 hours direct material quantity variance: $1 500 unfavourable. 2. Prepare journal entries to record the following: (a) purchase of raw material (b) adding direct material to work in process inventory (c) adding direct labour to work in process inventory (d) recording of variances