7-19 General Journal Entries for Materials Consider the following data compiled by the manufacturer of 1,000 television tables: Standard price per square foot Actual price per square foot Standard quantity allowed Actual quantity used Actual quantity purchased $.65 $.62 4,000 square feet 4,300 square feet 5,000 square feet 1. The manager of purchasing wants early monitoring of price variances, and the manager of production wants early detection of efficiency variances. Prepare journal entries that would most closely reflect the timing of the isolation of each variance. Price variances are isolated upon purchase of materials, and efficiency variances upon the use of excess-materials requisitions. 2. Another company has the same process, but its managers are less concerned about carly isolation of variances. Instead, price variances are isolated upon material requisitions by the producing departments. In this way, the produc- tion department's efficiency can still be measured because price volatility will not affect the efficiency variance. This company does not isolate efficiency variances until after production is completed. Prepare journal entries that would most closely reflect the timing of the isolation of each variance. Show T-accounts.