Cost and production data for Gigante Products Company follow: Standard Cost Sheet (Normal capacity'1,000 units)

During the month, 850 units were sold at $60 each.
Note: Materials, labor, and overhead are added evenly throughout the process.
Required:
1. Make general journal entries to record all transactions and variances. Use the two-variance method for overhead variance analysis. (Hint: You must first compute equivalent units and the variances for materials, labor, and factory overhead.)
2. Prove the ending balances of Work in Process in both departments.
3. Prove that all costs have been accountedfor.

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xing Blending Total Materials: I-2 lb$2 per lb 1-2lb $1 per lb. S 4 s 2 S 6 Labor: 2 hr $5 perhr. 1 hr S6 perhr 10 Factory overhead (per standard labor hour: Fixed Variable S1 (2 hr per unit) (1 hr per unit). 52 10 Total ..._ . $20 $12 S32 Production Report Beginning units in process. Units finished and transferred Ending units in process Stage of completion Mixing None 1,000 200 112 Blending None 900 100 1/2 Actual Cost Data Mixing Blending Direct materials used: I-2300 lb Il-1,850lb.. $4,715 $1,813 Directlabor: 2150 hr 1,000 hr 10,965 5,900 Factory overhead Indirect labor Other (fixedcosts) S 500 1,000 6,700 2,250 1.300 4,400 3,750 Total $22,380 $11463