Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

DM & DL variances; journal entries Madzingas Draperies manufactures curtains. Curtain #4571 requires the following: Direct material standard 10 square yards at $5 per yard

DM & DL variances; journal entries Madzingas Draperies manufactures curtains. Curtain #4571 requires the following:

Direct material standard 10 square yards at $5 per yard
Direct labor standard 5 hours at $10 per hour

During the second quarter, the company purchased 13,600 square yards at a cost of $66,640 and used 13,200 square yards to produce 1,200 Curtain #4571s. Direct labor totaled 6,080 hours for $63,840. a. Compute the material price and quantity variances. Note: Do not use a negative sign with your answers.

Material price variance Answer AnswerFavorableUnfavorableNeither favorable or unfavorable
Material quantity variance Answer AnswerFavorableUnfavorableNeither favorable or unfavorable

b. Prepare the journal entries for the purchase and use of direct material. Note: Round amounts to the nearest whole dollar. Note: Record any multiple debits or any multiple credits in alphabetical order by account name.

Account Debit Credit
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
To record material price variance
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
To record material quantity variance

c. Compute labor rate and labor efficiency variances. Note: Do not use a negative sign with your answers. Note: Round your final answer to the nearest whole dollar.

Labor rate variance Answer AnswerFavorableUnfavorableNeither favorable or unfavorable
Labor efficiency variance Answer AnswerFavorableUnfavorableNeither favorable or unfavorable
Total labor variance Answer AnswerFavorableUnfavorableNeither favorable or unfavorable

d. Prepare the journal entry to accrue direct labor cost and record the labor variances for the quarter.

Account Debit Credit
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory Answer Answer
To record labor variances

PreviousSave AnswersNext

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Funny Audit Stories Auditor Stories To Make You Laugh Out Loud

Authors: Truman Ballas

1st Edition

B097DCG5GS, 979-8524946072

More Books

Students also viewed these Accounting questions

Question

5. Understand how cultural values influence conflict behavior.

Answered: 1 week ago

Question

8. Explain the relationship between communication and context.

Answered: 1 week ago