The Ekesville Company's standard cost card for one unit of Jellplug calls for two quarts of Jelex at $2 a quart and 1/4 hour of direct labor at $12 per hour. During the current month, 10,000 units of Jellplug were manufactured. Actual production required 21,000 quarts of Jelex at an actual cost of $2.02 per quart and 2,425 direct labor hours at an average rate of $12.20 per hour.
Required:
Prepare general journal entries to record the issue of materials to production and the charge for direct labor, including variances. Assume materials are inventoried at actual cost and the price variance is recorded when materials are issued.