Direct Materials Variances: Journal Entries

Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) that it sells to other companies for bottling and sale to consumers. Chypre developed the following standard cost sheet:

Direct Material	Mix		Mix Proportion	SP	Standard Cost
Solvent mix	760	gallons	0.95	$ 5.27	$ 4,005.20
Aromatic compounds	40		0.05	8,000.00	320,000.00
Total	800	gallons			$324,005.20
Yield	720	gallons

On May 2, Chypre produced a batch of 1,000 gallons with the following actual results:

Direct Material	Actual Mix
Solvent mix	945	gallons
Aromatic compounds	55
Total	1,000	gallons
Yield	880	gallons

Chypre, Inc., purchased the amount used of each direct material input on May 2 for the following actual prices: solvent mix for $5.20 per gallon, and aromatic compound for $8,010 per gallon.

Required:

Question Content Area

1. Compute the direct materials price variances. If required, round your answers to the nearest cent.

Solvent mix:
MPV	$fill in the blank	FavorableUnfavorable
Aromatic compounds:
MPV	$fill in the blank	FavorableUnfavorable

Question Content Area

Journalize the direct materials price variances. If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank or enter "0".

Solvent mix:	CashOverhead ControlFinished GoodsDirect Materials Usage VarianceMaterialsWork in Process	- Select -	- Select -
	Finished GoodsOverhead ControlDirect Materials Usage VarianceDirect Materials Price VarianceWork in ProcessCash	- Select -	- Select -
	Overhead ControlFinished GoodsAccounts PayableDirect Materials Usage VarianceMaterialsWork in Process	- Select -	- Select -
Aromatic compounds:	CashOverhead ControlFinished GoodsDirect Materials Usage VarianceMaterialsWork in Process	- Select -	- Select -
	CashOverhead ControlFinished GoodsDirect Materials Price VarianceWork in Process	- Select -	- Select -
	Accounts PayableOverhead ControlFinished GoodsDirect Materials Price VarianceMaterialsWork in Process	- Select -	- Select -
Combined:	CashOverhead ControlFinished GoodsDirect Materials Usage VarianceMaterialsWork in Process	- Select -	- Select -
	CashOverhead ControlFinished GoodsDirect Materials Usage VarianceWork in ProcessDirect Materials Price Variance	- Select -	- Select -
	Accounts PayableOverhead ControlFinished GoodsDirect Materials Price VarianceMaterialsWork in Process	- Select -	- Select -

**Select >>>>>>>>>> Cash, overhead control, Finished Goods, Accounts payable, Direct Materials Usage Variance, Materials, Work in process.

Question Content Area

2. Compute the direct materials usage variance. In your computations, round the standard quantities to two decimal places. Round your final answer to the nearest cent. $

FavorableUnfavorableNot applicable

Question Content Area

Journalize the direct materials usage variances. In your computations, round the standard quantities to two decimal places. Round your final answers to the nearest cent. If an amount box does not require an entry, leave it blank or enter "0".

Solvent mix:	CashFinished GoodsOverhead ControlAccounts PayableMaterialsWork in Process	- Select -	- Select -
	CashFinished GoodsOverhead ControlDirect Materials Usage VarianceMaterials	- Select -	- Select -
	Direct Materials Usage VarianceCashFinished GoodsOverhead ControlAccounts PayableMaterialsWork in Process	- Select -	- Select -
Aromatic compounds:	CashFinished GoodsOverhead ControlAccounts PayableMaterialsWork in Process	- Select -	- Select -
	CashFinished GoodsOverhead ControlDirect Materials Usage VarianceMaterials	- Select -	- Select -
	Direct Materials Usage VarianceCashFinished GoodsOverhead ControlAccounts PayableMaterialsWork in Process	- Select -	- Select -
Combined	CashFinished GoodsOverhead ControlAccounts PayableMaterialsWork in Process	- Select -	- Select -
	CashFinished GoodsOverhead ControlDirect Materials Usage VarianceMaterials	- Select -	- Select -
	Direct Materials Usage VarianceCashFinished GoodsOverhead ControlAccounts PayableMaterialsWork in Process	- Select -	- Select -

Would you kindly assist and explain:) I'm grateful for your help.