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Canandaigua Container Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller.

Direct Labor:	Direct Material:
Quantity, 0.13 hour	Quantity, 6 kilograms
Rate, $6.50 per hour	Price, $0.36 per kilogram

Actual material purchases amounted to 112,000 kilograms at $0.400 per kilogram. Actual costs incurred in the production of 16,000 units were as follows:

Direct labor:	$16,200 for 2,400 hours
Direct material:	$40,000 for 100,000 kilograms

8.Prepare the following journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Designate a credit or debit. Designate one of the following: No journal entry required, accounts payable, cost of finished goods, or cost of goods sold.

Record the purchase of direct material on account and the direct-material purchase price variance.

Record the addition of direct-material cost to work-in-process inventory and direct-material quantity variance.

Record the addition of direct-labor cost to work-in-process inventory and the direct-labor variances.

Record the closing of the direct materail and direct labor variances to cost of goods sold.

Required:

Post the journal entries prepared above to the appropriate T-accounts below. Be sure to select from the dropdown menu the transaction number associated with each amount posted.

value: 10.00 points

Required information