20-21

Hart Company made 4,400 bookshelves using 34,000 board feet of wood costing $387,600. The company's direct materials standards for one bookshelf are 8 board feet of wood at $11.30 per board foot.

(1)

Compute the direct materials price and quantity variances incurred in manufacturing these bookshelves.

Actual Cost								Standard Cost

21.

Hart Company records standard costs in its accounts and its materials variances in separate accounts when it assigns materials costs to the Work in Process Inventory account.

(1)	Prepare the journal entry that both charges the direct materials costs to the Work in Process Inventory account and records the materials variances in their proper accounts.
	Record price and quantity variances.

(2)	Assume that Hart's materials variances are the only variances accumulated in the accounting period and that they are immaterial. Prepare the adjusting journal entry to close the variance accounts at period-end.
	Record closing of price and quantity variances to cost of goods sold.