Question
Bliny Corporation makes a product with the following standard costs for direct material and direct labor: Direct material: 3.50 meters at $3.90 per meter $
Bliny Corporation makes a product with the following standard costs for direct material and direct labor: |
Direct material: 3.50 meters at $3.90 per meter | $ | 13.65 | |
Direct labor: 0.55 hours at $12.50 per hour | $ | 6.88 | |
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Material purchased: 13,900 meters at $3.55 per meter | $ | 49,345 |
Material used in production: 17,450 meters | ||
Direct labor: 2,600 hours at $12.75 per hour | $ | 33,150 |
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The standard cost variances for direct material and direct labor are: |
Materials price variance: 13,900 meters at $0.35 per meter F | $ | 4,865 | F | ||||
Materials quantity variance: 650 meters at $3.90 per meter U | $ | 2,535 | U | ||||
Labor rate variance: 2,600 hours at $0.25 per hour U | $ | 650 | U | ||||
Labor efficiency variance: 40 hours at $12.50 per hour F | $ | 500 | F | ||||
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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.)
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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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Transaction General Journal Debit Credit Raw materials Materials price variance Accounts payable
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