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Boron Chemical Company produces a synthetic resin that is used in the automotive industry. The company uses a standard cost system. For each

gallon of output, the following direct manufacturing costs are anticipated:

Direct labor: $3\mathrm{.}80$ hours at $$26\mathrm{.}00$ per hour

Direct materials: $3\mathrm{.}80$ gallons at $$22\mathrm{.}00$ per gallon

$$98\mathrm{.}80$

$$83\mathrm{.}60$

During December of the current year, Boron produced a total of $2,680$ gallons of output and incurred the following direct manufacturing costs:

Direct labor: $10,000$ hours worked at an average wage rate of $$21\mathrm{.}30$ per hour

Direct materials:

Purchased: $11,200$ gallons @ $$22\mathrm{.}45$ per gallon

Used in production: $10,300$ gallons

Boron records price variances for materials at the time of purchase.

Required:

Prepare journal entries for the following events and transactions.

Purchase, on credit, of direct materials.

Direct materials issued to production.

Direct labor cost of units completed this period.

Direct manufacturing cost $($direct labor plus direct materials$)$ of units completed and transferred to Finished Goods Inventory.

Sale $($on credit$),$ for $$330$ per gallon, of $2,400$ gallons of output. $($Hint: You will need two journal entries here.$)$

$($For all requirements, if no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round

your answers to the nearest whole dollar amount.$)$

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Journal entry worksheet

Purchase, on credit, of direct materials.

Note: Enter debits before credits.

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