Question
Brussels Chocolate Company produces chocolates in large batches. One batch of chocolate has the following standard costs and amounts: Standard kilograms of sugar 125 Standard
Brussels Chocolate Company produces chocolates in large batches. One batch of chocolate has the following standard costs and amounts:
Standard kilograms of sugar | 125 |
Standard cost per kilogram of sugar | $1.60 |
Standard direct labour hours | 0.75 |
Standard direct labour cost per hour | $21.00 |
Brussels Chocolate Company produced 600 batches of chocolates in the most recent month. Actual input costs and per batch usage levels were as follows:
Actual kilograms of sugar used | 126 |
Actual cost per kilogram of sugar | $1.65 |
Actual direct labour hours | 0.80 |
Actual direct labour cost per hour | $20.75 |
Required:
- Record the journal entry for the purchase of raw materials, including the materials input rate variance.
- Record the journal entry for the transfer of materials from raw materials inventory to work-in-process inventory. Be sure to include how the material efficiency variance would be journalized.
- Record the journal entry for direct labour, including the labour rate and labour efficiency variances.
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