Transaction	General Journal	Debit	Credit
1.	Direct materials (185,600*$0.52) (AQ purchases*SP)	$96,512
	Direct material purchase price variance (185,600*($0.6-0.52) (AQ purchases*(AP-SP)	14,848
	Accounts payable (185,600*$0.6) (AQ purchases*AP)		$111,360
	(To record purchase of direct material on account and direct material purchase price variance)
	Where; AQ = Actual Quantity, SP = Standard Price, AP=Actual Price

2.	Work in process (32,000*4*$0.52) (SQ*SP)	$66,560
	Direct material quantity variance (128,000-142,400)*$0.52, (SQ-AQ)*SP	7,488
	Direct material (142,400*$0.52) (AQ*SP)		$74,048
	(To record addition of direct material cost to work in process and direct material quantity variances)
	Where; SQ =Standard Quantity
3	Work in process (32,000*0.21)*$10.5 (SH*SR)	$70,560
	Direct labor rate variance 7,040*$10.5 - $77,088, (AH*SR)-(AH*AR)	3,168
	Direct labor efficiency variance (32,000*0.21)-7,040*$10.5 (SH-AH)*SR	3,360
	Wages payable (AH*AR)		$77,088
	(To record addition of direct labor cost to work in process and direct labor variances)
	Where; SH=Standard hours, AH=Actual Hours, SR=Standard Rate, AH=Actual Rate
4.	Cost of goods sold	$28,864
	Direct material purchase price variance		$14,848
	Direct material quantity variance		7,488
	Direct labor rate variance		3,168
	Direct labor efficiency variance		3,360
	(To record closing of direct material and direct labor variances to cost of goods sold)

Required Information [The following Information applies to the questions displayed below.) Saskatewan Can 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: Quantity, 9.21 hour Rate, $18.50 per hour Direct Material: Quantity, 4 kilograms Price, $8.52 per kilogram Actual material purchases amounted to 185,600 kilograms at $0.600 per kilogram. Actual costs incurred in the production of 32,000 units were as follows: Direct labor: Direct material: $77,088 for 7, 48 hours $85, 440 for 142,400 kilograms 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. Raw Material Inventory Direct-Material Purchase Price Variance Work-in-Process Inventory Direct-Material Quantity Variance Accounts Payable Direct-Labor Rate Variance Wages Payable Direct-Labor Efficiency Variance Cost of Goods Sold