28 Wrap Te A A 10 Callbrl (Body) Ich Marge & Center Pasta B U > Office Update To keep up-to-date with securtly updates, fixes, and Improvements, choose Check for Updates ABS x fx B C O Problem 2: Standard Casting 1 2 4 5 Ultra, Inc.manufactures and sells a full line of sunglasses. The company uses a standard cost system. Department managers are held responsible for the explanation of the variances in their department performance reports. Recently, the variances in the Prestige line of sunglasses have been of concem. Data for the month of Augusti presented below. Assume beginning and ending inventory level for WP and Fare zero. State Budet $592.800 6 Actual 7 $566,100 revenues 8 $151,000 5163,700 OM $134,000 5136,500 DL 10 $114,200 5113.800 FOH (cost driverDL hours) $193.600 $152.100 12 gross profit + 576.00 576.50 14 seling price per Prestige sunglass DM (total och Date 15 per DL hour 15.600 16.100 15 518.00 $1955 16 18 19 20 21 22 23 24 25 Problem 2 Problem 1 + (1) Prepare the journal entry for the purchase of DM. Assume DM ourchases - DM used. (2 points) accounts payable DM spending variance DM Inventory (2) Prepare the journal entry for the release of DM into production (2 points) WIP Inventory DM Inventory DM efficiency variance (3) Prepare the journal entries for DL. (4 points) DL expense wages payable DL efficiency variance WIP inventory DL spending variance DL expense (4) Prepare the journal entries for FOH. (4 points) accounts payable FOH expenses mfg FOH control FOH expenses mfg FOH control WIP Inventory mfg FOH control FOH volume variance FOH spending variance (5) Prepare the adjusting entries to close out the variance accounts. (4 points) DM spending variance OGS DM efficiency variance OGS DL spending variance CGS DL efficiency variances CGS FOH volume variance CGS FOH spending variance CGS