Griffin Manufacturing Inc. has two departments, Mixing and Blending.
When goods are completed in Mixing, they are transferred to Blending and then to the finished goods storeroom. There was no beginning or ending work in process in either department. Listed below is information to be used in preparing journal entries at the end of October:
Standard cost of direct materials for actual production—Mixing $ 185,000
Actual cost of direct materials used in production—Mixing . . . . 177,000
Materials price variance—Mixing. . . . . . . . . . . . . . . . . . . . . . . . 10,000 F
Materials quantity variance—Mixing . . . . . . . . . . . . . . . . . . . . . 2,000 U
Standard cost of direct materials for actual production—Blending 130,000
Actual cost of direct materials used in production—Blending . . 136,000
Materials price variance—Blending . . . . . . . . . . . . . . . . . . . . . . 4,000 U
Materials quantity variance—Blending. . . . . . . . . . . . . . . . . . . . 2,000 U
Standard cost of direct labor for actual production—Mixing . . . 110,000
Actual cost of direct labor used in production—Mixing . . . . . . . 103,000
Labor rate variance—Mixing . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 F
Labor efficiency variance—Mixing . . . . . . . . . . . . . . . . . . . . . . . 3,000 U
Standard cost of direct labor for actual production—Blending. . 95,000
Actual cost of direct labor used in production—Blending . . . . . 110,000
Labor rate variance—Blending. . . . . . . . . . . . . . . . . . . . . . . . . . 8,000 U
Labor efficiency variance—Blending . . . . . . . . . . . . . . . . . . . . . 7,000 U
Actual factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145,000
Factory overhead applied—Mixing. . . . . . . . . . . . . . . . . . . . . . . 85,000
Factory overhead applied—Blending . . . . . . . . . . . . . . . . . . . . . 70,000
Prepare journal entries for the following:
1. The issuance of direct materials into production and the recording of the materials variances. (Prepare separate entries for each department.)
2. The use of direct labor in production and the recording of the labor variances. (Prepare separate entries for each department.)
3. The entries to record the actual and applied factory overhead.
4. The entries to transfer the production costs from Mixing to Blending and from Blending to Finished Goods.