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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: $0.21/hour	Quantity: 4kg
Rate: $10.50/hour	Price: $0.52/kg

Actual material purchases amounted to 185,600 kilograms at $0.60 per kilogram. Actual costs incurred in the production of 32,000 units were as follows:

Direct labor: $77,088 for 7040 hours

Direct material: $85440 for 142400 kilograms

Prepare the following journal entries: (if no entry is required for a transaction/event, select no journal entry required in the 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
Transaction	General Journal	Debit	Credit
1

Journal Entry Worksheet
Record the addition of direct material cost to work-in-process inventory and the direct-material quantity variance
Transaction	General Journal	Debit	Credit
2

Journal Entry Worksheet
Record the addition of direct-labor cost to work-in-process inventory and the direct labor variances
Transaction	General Journal	Debit	Credit
3

Journal Entry Worksheet
Record the closing of the direct material and direct labor variances to costs of goods sold
Transaction	General Journal	Debit	Credit
4

Post the journal entries prepared above to the appropriate T-accounts below. Be sure to insert the transaction number associated with each amount posted in the first column. (1,2,3 or 4 from journal above)

Raw-Material Inventory

Direct Material Purchase Price Variance

Work In process Inventory

Direct Material quantity variance

Accounts payable

Direct labor rate variance

Wages payable

Direct labor efficiency variance

Cost of goods sold

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