Esteban Products produces instructional aids, including white boards, which use colored markers instead of chalk. These are particularly popular for conference rooms in educational institutions and executive offices of large corporations. The standard cost of materials for this product is 10 pounds at $8.50 per pound.

During the first month of the year, 3,600 boards were produced. Information concerning actual costs and usage of materials follows:

Materials purchased	35,600 lbs. @ $8.60
Materials used	35,100 lbs.

	Required:
1.	Compute the materials price and usage variances.
2.	Prepare journal entries on Jan. 31 for all activity relating to materials.

1. Compute the materials price and usage variances.

Materials price variance
Materials usage variance

2. Prepare journal entries on Jan. 31 for all activity relating to materials. Refer to the Chart of Accounts for the exact wording of account titles.

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GENERAL JOURNAL

	DATE	ACCOUNT	POST. REF.	DEBIT	CREDIT
1
2
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6