Problem 24-06A a-d Metlock Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,000 units of Product B was received. The standard cost of one unit of Product B is as follows. $3.90 Direct materials Direct labor 18.00 3 pounds at $1.30 per pound 1.80 hour at $10.00 per hour 2 hours (variable $4.40 per machine hour; fixed $3.40 per machine hour) Overhead 15.60 Standard cost per unit $37.50 Normal capacity for the month was 4,020 machine hours. During January, the following transactions applicable to Job No. 12 occurred. 1. 2. 3. 4. Purchased 3,400 pounds of raw materials on account at $1.38 per pound. Requisitioned 3,400 pounds of raw materials for Job No. 12. Incurred 1,860 hours of direct labor at a rate of $9.95 per hour. Worked 1,860 hours of direct labor on Job No. 12. Incurred manufacturing overhead on account $16,850. Applied overhead to Job No. 12 on basis of standard machine hours allowed. Completed Job No. 12. Billed customer for Job No. 12 at a selling price of $85,000. 5. 6. 7. 8. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. 6. 7. 8. (To record sales.) (To record cost of goods sold.) Post to the job order cost accounts. (Post entries in the order of journal entries presented in the previous part.) Raw Materials Inventory Factory Labor Manufacturing Overhead Materials Price Variance Materials Quantity Variance Labor Price Variance Labor Quantity Variance Work in Process Inventory Finished Goods Inventory Cost of Goods Sold 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 Work in Process Inventory Finished Goods Inventory Cost of Goods Sold 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 Prepare the January 2020 income statement for management. Assume selling and administrative expenses were $3,100. METLOCK CORPORATION Income Statement