Problem 11-6A Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 2,000 units of Product B was received. The standard cost of one unit of Product B is as follows. Direct materials Direct labor Overhead $3.30 13.60 14.20 $31.10 3 pounds at $1.10 per pound 1.70 hour at $8.00 per hour 2 hours (variable $4.40 per machine hour; fixed $2.70 per machine hour) Standard cost per unit Normal capacity for the month was 4,470 machine hours. During January, the following transactions applicable to Job No. 12 occurred. 1. Purchased 6,400 pounds of raw materials on account at $1.18 per pound 2 Requisitioned 6,400 pounds of raw materials for Job No. 12. 3. Incurred 3,480 hours of direct labor at a rate of $7.95 per hour 4. Worked 3,480 hours of direct labor on Job No. 12. 5. Incurred manufacturing overhead on account $30,480. 6. Applied overhead to Job No. 12 on basis of standard machine hours allowed. 7. Completed Job No. 12. 8. Billed customer for Job No. 12 at a selling price of $180,000 Your answer is partially correct. Try again. ournalizethe transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation 1. Raw Materials Inventory Debit Credit 7040 Materials Price Variance 512 Accounts Payable 7552 2. Work in Process Inventory 6600 Materials Quantity Variance 440 Raw Materials Inventory 7040 3. Factory Labor 27840 Labor Price Variance 174 Factory Wages Payable Work in Process Inventory Labor Quantity Variance 27666 4. 27200 640 Factory Labor 27840 5. Manufacturing Overhead 30480 Accounts Payable 30480 6. Work in Process Inventory 48280 Manufacturing Overhead 48280 7. Finished Goods Inventory 62200 Work in Process Inventory 62200 8. Accounts Receivable 180000 Sales Revenue (To record sales.) Cost of Goods Sold 180000 62200 Finished Goods Inventory 62200 (To record cost of goods sold.) Post to the job order cost accounts. (Post entrics in the order of journal cntries presented in the previous part.) Raw Materials Inventory 70 (2) Factory Labor 512(2) Manufacturing Overhead 6600 (7) 040 7040 (2) # 62200 Materials Price Variance (4) 27200(7) 62200 Materials Quantity Variance 6) 482 (7): 62200 Labor Price Variance 278, 4) Labor Quantity Variance 440(4) Work in Process Inventory 622 8) 27840 2) 27840 62200 482 6) 48280 174 Finished Goods Inventory 4) 4 640 Cost of Goods Sold 62200 Your answer is partially correct. Try again. Prepare the entry to recognize the total overhead variance. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Overhead Variance 19880 Manufacturing Overhead 19880 Prepare the January 2020 income statement for management. Assume selling and administrative expenses were 2,100 JORGENSEN CORPORATION Income Statement For the Month Ended January 31, 2020 Sales Revenue 180000 Cost of Goods Sold Gross Profit (at Standard) 62200 Variances Materials Price Variance 512 Unfavorable Materials Quantity Variance 440 Unfavorable Labor Price Variance (174) Favorable Labor Quantity Variance 640 Unfavorable Overhead Variance 19980 Unfavorable Total Variance Unfavorable 21398 Gross Profit (Actual) 96402 Selling and Administrative Expenses 96402 Net Income/ (Loss) Click if you would like to Show Work for this