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System IO 14-3, 14-5) Boron Chemical Company produces a synthetic resin that is used in the automotive industry. The company uses a standard cost system.

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System IO 14-3, 14-5) Boron Chemical Company produces a synthetic resin that is used in the automotive industry. The company uses a standard cost system. For each gallon of output, the following direct manufacturing costs are anticipated Direct labor: 3.80 hours at $26.00 per hour Direct materials: 3.80 gallons at $22.00 per gallon 598.80 $83.60 During December of the current year, Boron produced a total of 2,680 gallons of output and incurred the following direct manufacturing costs: Direct labor: 10,000 hours worked at an average wage rate of $21.30 per hour Direct materials: Purchased: 11,200 gallons @ $22.45 per gallon Used in production: 10,300 gallons Boron records price variances for materials at the time of purchase. Required: Prepare journal entries for the following events and transactions. on credit, of direct materials. Boron records price variances for materials at the time of purchase. Required: Prepare journal entries for the following events and transactions. 1. Purchase, on credit, of direct materials. 2. Direct materials issued to production. 3. Direct labor cost of units completed this period, 4. Direct manufacturing cost (direct labor plus direct materials) of units completed and transferred to Finished Goods Inventory. 5. Sale (on credit), for $330 per gallon, of 2,400 gallons of output. (Hint: You will need two journal entries here.) (For all requirements, if no entry is required for a transaction/event, select "No journal entry required" in the fin account field. Round your answers to the nearest whole dollar amount.) View transaction list to meducation.com Ch14615 Homework 3 Journal entry worksheet 5 1 > Purchase, on credit, of direct material ferences Notenter debts before credits Transaction 01 Cro General Journal Direct materials inventory Direct materials purchase-price variance Accounts payable Debit 246400 Record entry Clear entry View general Journal Submit Journal entry worksheet Direct labor cost of units completed this period. Note: Enter debits before credits Debit Credit 264,784 Transaction General Journal 03 Work-in-process inventory Direct labor rate variance Direct labor efficiency variance Accounts payable 4,700 4,784 213,000 View general Journal Clear entry Record entry to Finished Goods Inventory. Note: Enter debits before credits. Transaction 04 Debit Credit General Journal Finished goods inventory Work-in-process inventory 264,784 264,784 Record entry Clear entry View general journal orences Note: Enter debits before credits Transaction Credit 5(a) General Journal Cost of goods sold Finished goods inventory Debit 437,780 437,760 Record entry Clear entry View general journal 6 Record the sale on account. Note: Enter debits before credits Transaction 5(b) Credit General Journal Accounts receivable Sales revenue Debit 792,000 792,000 Record entry Clear entry View general journal

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