16.

a. Compute the standard cost for one hat, based on the following standards for each hat:

Standard Material Quantity:

One yard of fabric at $3,00 per yard

Standard Labor: One hour at $5.00 per hour

Factory Overhead: $2 per direct labor hour

b. Record the journal entry for 1,000 units transferred at the standard cost from WIP to FG.

This is the journal entry to record the cost of goods completed which are transferred to the FG Inventory department or warehouse.

c. Assume 1,200 finished goods (hats) are sold for $15.00 each.

Required: What is journal entry for the sales on account?

d. Record the journal entry from #18 for the cost of goods sold for the 1,200 units at the standard cost per unit?