Question
Exercise 17-22 (Static) Prorating Direct Material Cost Variances (LO 17-1) In reviewing activity for July, the controller of Mathis, Inc., collected the following data concerning
Exercise 17-22 (Static) Prorating Direct Material Cost Variances (LO 17-1)
In reviewing activity for July, the controller of Mathis, Inc., collected the following data concerning direct materials.
Actual production | 103,000 | units | |
Direct materials purchased (actual) | $ | 1,642,800 | |
Standard cost of materials purchased | 1,554,000 | ||
Standard direct materials costs per unit produced | 14 | ||
Standard price times actual amount of materials used | 1,405,950 | ||
Assume that Mathis Company had no beginning finished goods inventory and only produced one product. Mathis sold 90,640 units during the period.
Required: a. Assume Mathis writes off all variances to Cost of Goods Sold. Prepare the entries Mathis would make to record and close out the variances. b. Assume Mathis prorates all variances to the appropriate accounts. Prepare the entries Mathis would make to record and close out the variances.
Assume that Mathis Company had no beginning finished goods inventory and only produced one product. Mathis sold 90,640 units during the period.
Required: a. Assume Mathis writes off all variances to Cost of Goods Sold. Prepare the entries Mathis would make to record and close out the variances.
- Record the standard cost of materials used and the materials efficiency variance.
Note: My Journal entries are incorrect. Also there is no option for direct labor in connect for the journal entries.
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Record the cost of the direct materials purchased and the materials price variance.
Note: Enter debits before credits.
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- Record the closure of direct labor cost variances to Cost of Goods Sold.
Note: Enter debits before credits.
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b. Assume Mathis prorates all variances to the appropriate accounts. Prepare the entries Mathis would make to record and close out the variances.
- Record the standard cost of materials used and the materials efficiency variance.
Note: Enter debits before credits.
|
- Record the cost of the direct materials purchased and the materials price variance.
Note: Enter debits before credits.
|
- Record the closure of direct labor cost variances to Cost of Goods Sold and Finished Goods Inventory.
Note: Enter debits before credits.
|
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