Refer to the data provided in Exercise 10-35.
Required:
  1.  Prepare a journal entry for the purchase of raw materials.
  2.  Prepare a journal entry for the issuance of raw materials.
  3.  Prepare a journal entry for the addition of labor to Work in Process.
  4.  Prepare a journal entry for the closing of variances to Cost of Goods Sold.

Data From Exercise 10-35:

Camisa Company produces single-colored t-shirts. Materials for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established:

        Direct materials (2.5 lbs. @ $0.90)          $2.25
        Direct labor (0.75 hr. @ $7.00)                  5.25
        Standard prime cost                               $7.50 

During the year, 53,000 pounds of material were purchased and used for the changeover activity. There were 20,000 batches produced, with the following actual prime costs:

            Direct materials                     $42,000
            Direct labor                            102,000 (for 14,900 hrs.)

Required:
Compute the materials and labor variances associated with the changeover activity, labeling each variance as favorable or unfavorable.