MajorNet Systems’s static budget predicted production of and sales of 100 connectors

in August, but the company actually produced and sold only 84 connectors. Direct

materials were budgeted at $95 per connector. The company purchased and used direct

materials that cost $8,148. What is the journal entry for the direct materials used?

Transcribed Image Text:

Date a. Raw Materials Inventory Direct Materials Cost Variance Accounts Payable b. Raw Materials Inventory C. Accounts and Explanation d. Direct Materials Efficiency Variance Accounts Payable Work-in-Process Inventory Direct Materials Cost Variance Raw Materials Inventory Work-in-Process Inventory Direct Materials Efficiency Variance Raw Materials Inventory Debit 7,980 168 7,980 168 7,980 168 7,980 168 Credit 8,148 8,148 8,148 8,148