Classic Company manufactures insulation materials. It has implemented JIT and had the following transactions.
1. Materials were purchased on account for $50,000.
2. All materials were placed into production.
3. Actual direct labor costs were $16,000.
4. Actual overhead costs were $30,000.
5. Conversion costs applied were $52,000.
6. All work was completed for the month.
7. All completed work was sold for $150,000.
8. The variance was recognized.
a. Record the journal entries for these transactions using the traditional approach.