Problem 16-70 (Static) (Appendix) Recording Costs in a Standard Costing System (LO 16 -7)

The standard cost sheet for Chambers Company, which manufactures one product, follows.

Direct materials, 40 yards at $2.00 per yard	$	80
Direct labor, 5 hours at $20 per hour		100
Factory overhead applied at 80% of direct labor
(variable costs = $60; fixed costs = $20)		80
Variable selling and administrative		64
Fixed selling and administrative		40
Total unit costs	$	364

Standards have been computed based on a master budget activity level of 28,800 direct labor-hours per month. Actual activity for the past month was as follows.

Materials used		228,000	yards at $2.05 per yard
Direct labor		25,200	hours at $20.40 per hour
Total factory overhead	$	444,000
Production		5,000	units

Assume there are no beginning inventories or ending inventories. All production was sold for $2,375,000.

Required:

Prepare the journal entries to record the activity for the last month using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the month. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

A. Record the actual costs of direct Materials incurred.

B. Record the actual costs of direct labor incurred.

C. Record the transfer of overhead applied to work-in-process inventory.

D. Record the actual costs of overhead incurred.

E. Record the overhead applied to production and variances, if any.

F. Record the transfer of WIP inventory to finished goods.

G. Record the sale of all goods.

H. Record the cost of all goods.

I. Record the disposition of variances.