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: 3.90 hours at $27.00 per hour $105.30 direct materials: 3.90 gallons at $23.00 per gallon $89.70during december of the current year, boron produced a total of 2,690 gallons of output and incurred the following direct manufacturing costs: direct labor: 10,350 hours worked @ an average wage rate of $21.40 per hour direct materials: purchased: 11,400 gallons @ $23.45 per gallon used in production: 10,600 gallonsboron records price variances for materials at the time of purchase. required: prepare journal entries for the following events and transactions: 1. purchase, on credit, of direct materials.2. direct materials issued to production.3. direct labor cost of units completed this period.
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