Question
Hart Company made 4,800 bookshelves using 26,000 board feet of wood costing $306,800. The company's direct materials standards for one bookshelf are 6 board feet
Hart Company made 4,800 bookshelves using 26,000 board feet of wood costing $306,800. The company's direct materials standards for one bookshelf are 6 board feet of wood at $11.70 per board foot.
Exercise 23-14A Materials variances recorded and closed LO P5
Hart Company records standard costs in its accounts and its materials variances in separate accounts when it assigns materials costs to the Work in Process Inventory account. (1) Prepare the journal entry that both charges the direct materials costs to the Work in Process Inventory account and records the materials variances in their proper accounts. (2) Assume that Hart's materials variances are the only variances accumulated in the accounting period and that they are immaterial. Prepare the adjusting journal entry to close the variance accounts at period-end.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started