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A total of 1,800 units are budgeted by Tarpon, Inc., for its first year of operations. Standards per unit have been established jointly by the cost accountants, management, and company engineers, as follows. Tarpon, Inc. uses a standard cost accounting system where they enter standard costs in the accounting records. A total of 14,825 pounds of direct materials were used in production. A total of 16,200 pounds were purchased during the period at a cost of $2.85 per pound. The company saved money by using lesser skilled workers at $0.20 per hour under standard. Actual labor hours used totaled 8,975 ; actual machine hours used were 7,300. Actual variable overhead incurred was $56,000 and actual fixed overhead incurred was $38,400. A total of 1,340 units were finished and transferred out of production: 1,000 of these were sold on account at $145 each. There were 500 units in ending work in process inventory. Tarpon, Inc. maintains perpetual inventory records for all inventories. REQUIRED: (1) Using the attached forms, prepare all the summary general journal entries, in proper form, required to record the transactions for the year for Tarpon, Inc. using a standard cost accounting system. The company isolates the materials price variance at the time of purchase and all other variances when the inputs are entered into production. Assume all actual costs are paid in cash. Show all appropriate computations to support your entries. Provide a brief explanation for your entries. (2) Using the attached forms and assuming that all variances are considered insignificant by management, prepare the general journal entry(ies) to close the variance accounts

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