Entries for Standard Costing System
Materials Inventory AQ x SP
Materials Price Variance
Accounts Payable AQ x AP
Materials Price Variance
Work in Process SQ x SP
Materials Usage Variance
Materials Inventory AQ x SP
Materials Usage Variance
Factory Payroll AQ x AR
Wages, Salaries, and Employment Taxes Payable AQ x AR
Work in Process SQ x SR
Labor Rate Variance
Labor Efficiency Variance
Factory Payroll AQ x AR
Labor Rate Variance
Labor Efficiency Variance
Variable Overhead Incurred Actual Costs
Cash, Materials Inventory, Factory Payroll, etc Actual Costs
Work in Process SQ of Input for Actual Output x VOR
Variable Overhead Allocated SQ of Input for Actual Output x VOR
Variable Overhead Allocated
Variable Overhead Spending Variance
Variable Overhead Efficiency Variance
Variable Overhead Incurred
Variable Overhead Spending Variance
Variable Overhead Efficiency Variance
Fixed Overhead Incurred Actual Costs
Cash, Factory Payroll, Accumulated Depreciation, etc Actual Costs
Work in Process SQ of Input for Actual Output x FOR
Fixed Overhead Allocated SQ of Input for Actual Output x FOR
Fixed Overhead Allocated
Fixed Overhead Spending Variance
Fixed Overhead Volume Variance
Fixed Overhead Incurred
Fixed Overhead Spending Variance
Fixed Overhead Volume Variance
Finished Goods Inventory At Standard Costs
Work in Process At Standard Costs
Accounts Receivable or Cash
Cost of Goods Sold
Sales
Finished Goods Inventory
All variances created above would be closed at the end of the period to Cost of Goods Sold or prorated among Cost of Goods Sold, Finished Goods, and Work in Process.
This will bring Work in Process, Finished Goods, and Cost of Goods Sold to actual costs as required by GAAP.