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I struggling to found the answer to what I should put in where there is the red x second image. I need help with those
I struggling to found the answer to what I should put in where there is the red x second image. I need help with those red x.
Berner Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (8.20 oz. @ $0.09) $0.74 Direct labor (0.07 hr. @ $18.00) 1.26 Standard prime cost $2.00 During the first week of operation, the company experienced the following actual results: a. Bars produced: 143,000. b. Ounces of direct materials purchased: 1,172,900 ounces at $0.08 per ounce. C. There are no beginning or ending inventories of direct materials. d. Direct labor: 9,870 hours at $17.20. Required: Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Compute price and usage variances for direct materials. Materials Price Variance $ 11,729 Favorable Materials Usage Variance 27 avorable 2. Compute the rate variance and the efficiency variance for direct labor. Labor Rate Variance 7,896 Favorable Labor Efficiency Variance 2,520 Favorable 3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank. Materials 0 x 0 Direct Materials Price Variance o 11,729 Accounts Payable 0 93,832 Record purchase of materials Work in Process 0 x 0 Direct Materials Usage Variance 27 0 Materials 0 0 Record usage of materials Work in Process 0 X 0 Direct Labor Rate Variance 0 0 Direct Labor Efficiency Variance 0 2,520 Wages Payable 0 169,764 Record labor variances Feedback Check My Work 3. Companies must restate costs and inventories at the end of the year to actual cost. So, variance accounts must be closed out and their balances applied to Cost of Goods Sold (if immaterial) or prorated among Cost of Goods Sold, Work in Process, and Finished Goods
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