[[[[[ Please answer #5 , I have resolved questions #1-4 ]]]]]

Direct Materials, Direct Labor, and Overhead Variances, Journal Entries

Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet:

Direct materials (5 lbs. @ $2.60)	$13.00
Direct labor (0.75 hr. @ $18.00)	13.50
Fixed overhead (0.75 hr. @ $4.00)	3.00
Variable overhead (0.75 hr. @ $3.00)	2.25
Standard cost per unit	$31.75

Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows:

1. Units produced: 53,000
2. Direct materials purchased: 274,000 pounds at $2.50 per pound
3. Direct materials used: 270,300 pounds
4. Direct labor: 40,100 hours at $17.95 per hour
5. Fixed overhead: $161,600
6. Variable overhead: $122,000

Required:

1. Compute price and usage variances for direct materials.

MPV	$fill in the blank 584973011025ffe_1	Favorable
MUV	$fill in the blank 584973011025ffe_3	Unfavorable

2. Compute the direct labor rate and labor efficiency variances.

Labor Rate Variance	$fill in the blank 584973011025ffe_5	Favorable
Labor Efficiency Variance	$fill in the blank 584973011025ffe_7	Unfavorable

3. Compute the fixed overhead spending and volume variances.

Spending Variance	$fill in the blank 584973011025ffe_9	Favorable
Volume Variance	$fill in the blank 584973011025ffe_11	Unfavorable

4. Compute the variable overhead spending and efficiency variances.

Spending Variance	$fill in the blank 584973011025ffe_13	Unfavorable
Efficiency Variance	$fill in the blank 584973011025ffe_15	Unfavorable

5. Prepare journal entries for the following:

1. The purchase of direct materials
2. The issuance of direct materials to production (Work in Process)
3. The addition of direct labor to Work in Process
4. The addition of overhead to Work in Process
5. The incurrence of actual overhead costs

If an amount box does not require an entry, leave it blank.

a.		fill in the blank 6cfe46016008001_2	fill in the blank 6cfe46016008001_3
		fill in the blank 6cfe46016008001_5	fill in the blank 6cfe46016008001_6
		fill in the blank 6cfe46016008001_8	fill in the blank 6cfe46016008001_9
b.		fill in the blank 6cfe46016008001_11	fill in the blank 6cfe46016008001_12
		fill in the blank 6cfe46016008001_14	fill in the blank 6cfe46016008001_15
		fill in the blank 6cfe46016008001_17	fill in the blank 6cfe46016008001_18
c.		fill in the blank 6cfe46016008001_20	fill in the blank 6cfe46016008001_21
		fill in the blank 6cfe46016008001_23	fill in the blank 6cfe46016008001_24
		fill in the blank 6cfe46016008001_26	fill in the blank 6cfe46016008001_27
		fill in the blank 6cfe46016008001_29	fill in the blank 6cfe46016008001_30
d.		fill in the blank 6cfe46016008001_32	fill in the blank 6cfe46016008001_33
		fill in the blank 6cfe46016008001_35	fill in the blank 6cfe46016008001_36
		fill in the blank 6cfe46016008001_38	fill in the blank 6cfe46016008001_39
e.		fill in the blank 6cfe46016008001_41	fill in the blank 6cfe46016008001_42
		fill in the blank 6cfe46016008001_44	fill in the blank 6cfe46016008001_45
		fill in the blank 6cfe46016008001_47	fill in the blank 6cfe46016008001_48

f. Prepare journal entries for the closing out of variances to Cost of Goods Sold. If an amount box does not require an entry, leave it blank.

First, close direct materials and direct labor variances:

		fill in the blank aef6f6ffef8dfe5_2	fill in the blank aef6f6ffef8dfe5_3
		fill in the blank aef6f6ffef8dfe5_5	fill in the blank aef6f6ffef8dfe5_6
		fill in the blank aef6f6ffef8dfe5_8	fill in the blank aef6f6ffef8dfe5_9
		fill in the blank aef6f6ffef8dfe5_11	fill in the blank aef6f6ffef8dfe5_12
		fill in the blank aef6f6ffef8dfe5_14	fill in the blank aef6f6ffef8dfe5_15

Second, recognize the overhead variances: If an amount box does not require an entry, leave it blank.

		fill in the blank 54b3e8fceffdfdd_2	fill in the blank 54b3e8fceffdfdd_3
		fill in the blank 54b3e8fceffdfdd_5	fill in the blank 54b3e8fceffdfdd_6
		fill in the blank 54b3e8fceffdfdd_8	fill in the blank 54b3e8fceffdfdd_9
		fill in the blank 54b3e8fceffdfdd_11	fill in the blank 54b3e8fceffdfdd_12
		fill in the blank 54b3e8fceffdfdd_14	fill in the blank 54b3e8fceffdfdd_15
		fill in the blank 54b3e8fceffdfdd_17	fill in the blank 54b3e8fceffdfdd_18

Third, close the overhead variances: Note: Close the variances with a debit balance first. For compound entries, if an amount box does not require an entry, leave it blank.

		fill in the blank ad864ff92f9a078_2	fill in the blank ad864ff92f9a078_3
		fill in the blank ad864ff92f9a078_5	fill in the blank ad864ff92f9a078_6
		fill in the blank ad864ff92f9a078_8	fill in the blank ad864ff92f9a078_9
		fill in the blank ad864ff92f9a078_11	fill in the blank ad864ff92f9a078_12
		fill in the blank ad864ff92f9a078_14
			fill in the blank ad864ff92f9a078_16