Journal Entries under Standard Costing (Appendix), Posting Journal Entries for Variances (Appendix) (LO 10-6, 10-9)

Canandaigua Container Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller.

Direct Labor:	Direct Material:
Quantity, 0.10 hour	Quantity, 3 kilograms
Rate, $5.00 per hour	Price, $0.30 per kilogram

Actual material purchases amounted to 34,000 kilograms at $0.325 per kilogram. Actual costs incurred in the production of 10,000 units were as follows:

Direct labor:	$6,120 for 1,200 hours
Direct material:	$10,075 for 31,000 kilograms
Questions: Record the purchase of direct material on account and the direct-material purchase price variance. Record the addition of direct-material cost to work-in-process inventory and the direct-material quantity variance. Record the addition of direct-labor cost to work-in-process inventory and the direct-labor variances. Record the closing of the direct-material and direct-labor variances to cost of goods sold.