Required information

Journal Entries under Standard Costing $($Appendix$),$ Posting Journal Entries for Variances $($Appendix$)($LO

$10-6,10-9)$

$[$The following information applies to the questions displayed below.$]$

Saskatewan Can 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:

Quantity, $0\mathrm{.}26$ hour Quantity, $5$ kilograms

Quantity, $5$ kilograms

Price, $$0.62$ per kilogram

Actual material purchases amounted to $243,600$ kilograms at $$0\mathrm{.}650$ per kilogram. Actual costs incurred in the production

of $42,000$ units were as follows:

Exercise $10-31$

Required:

Prepare the following journal entries. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first

account field. Do not round intermediate calculations.$)$

Exercise $10-31$

Required:

Prepare the following journal entries. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first

account field. Do not round intermediate calculations.$)$

Journal entry worksheet

Record the purchase of direct material on account and the direct$-$material

purchase price variance.

Note: Enter debits before credits.

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.

Exercise $10-32$

Required:

Post the journal entries prepared above to the appropriate T$-$accounts below. Be sure to select from the dropdown menu the

transaction number associated with each amount posted.Saskatewan Can 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, $0\mathrm{.}26$ hour Quantity, $5$ kilograms

Rate, $$13\mathrm{.}00$ per hour Price, $$0\mathrm{.}62$ per kilogram

Actual material purchases amounted to $243,600$ kilograms at $$0\mathrm{.}650$ per kilogram. Actual costs incurred in the production of $42,000$ units were as follows:

Direct labor: $$160,776$ for $12,180$ hours

Direct material: $$141,960$ for $218,400$ kilograms