Question
Bliny Corporation makes a product with the following standard costs for direct material and direct labor: Direct material: 1.70 meters at $5.80 per meter $
Bliny Corporation makes a product with the following standard costs for direct material and direct labor: |
Direct material: 1.70 meters at $5.80 per meter | $ | 9.86 |
Direct labor: .30 hours at $13.00 per hour | $ | 3.90 |
During the most recent month, 8,100 units were produced. The costs associated with the months production of this product were as follows: |
Material purchased: 15,200 meters at $5.60 per meter | $ | 85,120 |
Material used in production: 13,870 meters | ||
Direct labor: 2,380 hours at $13.20 per hour | $ | 31,416 |
The standard cost variances for direct material and direct labor are: |
Materials price variance: 15,200 meters at $0.20 per meter F | $ | 3,040 | F |
Materials quantity variance: 100 meters at $5.80 per meter U | $ | 580 | U |
Labor rate variance: 2,380 hours at $0.20 per hour U | $ | 476 | U |
Labor efficiency variance: 50 hours at $13 per hour F | $ | 650 | F |
Required: | |
1. | Prepare the journal entry to record the purchase of materials on account for the month.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
2. | Prepare the journal entry to record the use of materials for the month.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
3. | Prepare the journal entry to record the incurrence of direct labor cost for the month.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
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