Materials Price and Quantity Variances—Journal Entries Genesis Enterprises produces one product—MX4. The following information relating to raw materials is available for the month of March:

The standard materials usage for one unit of MX4 is 2 pounds with a standard price per pound of $3. Genesis produced 6,000 units of Product MX4 during the month.
1. Compute the materials price and quantity variances for Genesis assuming the materials price variance is computed at the time of purchase.
2. Provide the journal entries required to record:

a. The purchase of direct materials and the materials price variance.

b. Placing the direct materials in production and the materials quantity variance.

Transcribed Image Text:

Beginning direct materials inventory Purchases made during the month Direct materials placed in production 1,500 pounds @ $3.10 per unit 11,000 pounds @ $3.10 per unit 11,750 pounds