You were recently hired as a cost accountant for Procter & Gamble, a manufacturer of household products. The firm uses a standard cost system to control costs. One of the products manufactured is Detergent XZ which is a leading laundry detergent in the US. The main ingredient in Detergent XZ that helps the washing process work better is propylene glycol. The ingredient is purchased as a dry powder and mixed with water to produce the final product, which is sold in one-gallon containers.

				Standard	Actual
production and sales (gallons of detergent)				1,525,000	1,690,000
propylene glycol used (pounds)				800,000	850,000
propylene glycol (total cost in $$)				$1,000,000	$1,037,000
total DL cost				$2,000,000	$1,825,000
total DL hours incurred				66,667	61,655
fixed manufacturing OH incurred				$1,475,000	$1,527,000

Provide the journal entry for the purchase of the propylene glycol. Assume the quantity purchased is equal to the quantity used in production.

Provide the journal entry for the release of propylene glycol to production.

Provide the journal entry for efficiency and spending variances for DL.