Marlin Manufacturing Uses a Standard Cost System *Allocated Based on Direct Labor Hours

Essay

Marlin Manufacturing uses a standard cost system. Data on standard costs and actual costs are as follows:
$\begin{array}{lll}\text {Direct materials:}&\text {Standard}&\text { Actual}\\\text { Direct materials units per unit of output } & 2.0 & 3.3 \\\text { Cost per unit of direct materials } & \$ 5.00 & \$ 4.80 \\\text { Direct materials cost per unit } & \$ 10.00 & \$ 16.00 \\\text { Number of units } & 3,000 & 3,000 \\\text { Direct materials cost } & \$ 30.000 & \$ 48.000\end{array}$
$\begin{array}{lll}\text { Direct labor: } & \text { Standard } & \text { Actual } \\\text { Hours per unit } & 0.5 & 0.4 \\\text { Cost per hour } & \$ 18.00 & \$ 20.00 \\\text { Labor cost per unit } & \$ 9.00 & \$ 8.00 \\\text { Number of units } & 3,000 & 3,000 \\\text { Direct labor cost } & \$ 27.000 & \$ 24.000\end{array}$
$\begin{array}{lll}\text { Variable overhead } & \text { Standard } & \text { Actual } \\\text { Hours per unit } & 0.5 & 0.4 \\\text { Cost per hour } & \$ 30.00 & \$ 29.00 \\\text { Variable overhead cost per unit } & \$ 15.00 & \$ 11.60 \\\text { Number of units } & 3,000 & 3,000 \\\text { Variable overhead cost } & \$ 45.000 & \$ 34.800\end{array}$
*allocated based on direct labor hours
$\begin{array}{lll}\text { Fixed overhead* } & \text { Standard } & \text { Actual } \\\text { Hours per unit } & 0.5 & 0.4 \\\text { Cost per hour } & \$ 10.00 & \$ 9.00 \\\text { Fixed overhead cost per unit } & \$ 5.00 & \$ 3.60 \\\text { Number of units } & 3,000 & 3,000 \\\text { Fixed overhead cost } & \$ 15.000 & \$ 10.800\end{array}$
*allocated on the basis of direct labor hours
Give the journal entry to transfer the cost of units from Work-in-Process Inventory to Finished Goods Inventory. Omit explanation.