Premium Company uses a standard cost system and reports the following information

for $2024$:

$($Click the icon to view the information.$)$

Begin by journalizing the purchase of direct materials on account, including the related

Data table

Standards:

$3$ yards of cloth per unit at $$1\mathrm{.}00$ per yard

$2$ direct labor hours per unit at $$12\mathrm{.}50$ per hour

Overhead allocated at $$4\mathrm{.}00$ per direct labor hour

Actual:

$2,300$ yards of cloth were purchased at $$1\mathrm{.}05$ per yard

Employees worked $1,900$ hours and were paid $$12\mathrm{.}00$ per hour

Actual variable overhead was $$2,500$

Actual fixed overhead was $$4,100$

Premium Company reported the following variances:

Requirements

Record the journal entries for direct materials, direct labor, variable overhead, and

fixed overhead, assuming all expenditures were on account and there were no

beginning or ending balances in the inventory accounts $($all materials purchased

were used in production, and all goods produced were sold$).$ Record the journal

entries for the transfer to Finished Goods Inventory and Cost of Goods Sold $($omit

the journal entry for Sales Revenue$).$ Record the journal entry to adjust the

Manufacturing Overhead account. $($Record debits first, then credits. Select the

explanation on the last line of the journal entry table.$)$