Refer to the data in Exercise 10.24, above. (Ignore the new data in requirement 2.)

Apollo Can Ltd manufactures recyclable soft drink cans. A unit of production is a box of 12 cans. The following standards have been set by the production engineering staff and the factory accountant:

Direct material _________________________________ Direct labour

Quantity: it kilograms ………………………………. Quantity: 0.25 hour

Price: $0.60 per kilogram …………………………… Rate: $22 per hour

Actual material purchases amounted to 240 000 kilograms at $0.62 per kilogram. Actual c incurred in the production of 50 000 units were as follows:

Direct material …………………………………….. $130 200 for 210 000 kilograms

Direct labour ……………………………………………… $299 000 for 13 000 hours

Required:

1. Prepare journal entries to record:

(a) The purchase of direct materials and the direct material price variance.

(b) The use of direct material in production and the direct material quantity variance.

(c) The use of direct labour and direct labour variances.

(d) The closing of variances to cost of goods sold. 2 Set up ledger accounts, and post the journal entries to the general ledger?



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