Preparing Journal Entries to Record Direct Materials, Direct Labor, Variable Manufacturing Overhead
Refer to the information in PB10-5 for Gotta Cotta.
Required:
Prepare the journal entry to record the following for Gotta Cotta:
1.Direct materials costs and related variances. Assume the company purchases raw materials as needed and does not maintain any ending inventories.
2. Direct labor and related variances.
3. Variable overhead costs and related variances.
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