It was the end of the third quarter for Sheffield Industries. There had been some discussion in prior quarters about best practices related to carrying ending inventory of its key DM, acetic acid, for making vinegar. Per established standards, 7 ounces of acetic acid a a budgeted price of $0.30 per ounce were needed for each gallon of vinegar (128 ounces). The new production manager wants to follow lean practices and buy only what is needed for production, while the former production manager preferred to keep some inventory on hand for emergencies. For the third quarter, 305,300 ounces of acetic acid were purchased on account and used to make 43,000 gallons of vinegar. The purchase price was $88,537. (a1) Your answer is correct. Determine the DM price and efficiency variances for the third quarter based on the information above. DM price variance DM efficiency variance +A 3053 Favorable GA $ 1290 Unfavorable Record the journal entries for the purchase and use of DM under standard costing. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation DM Inventory Accounts Payable DM Price Variance (To record purchase of DM) WIP Inventory DM Efficiency Variance DM Inventory (To record use of DM) Debit 91590 90300 1290 Credit 88537 3053 91590 Continuing with the details in part (a), assume there was a zero balance in the DM Inventory account to start the third quarter. What would the DM Inventory balance be at the end of the quarter? How much did Sheffield Industries pay per ounce for the acetic acid? (Round amount per ounce to 2 decimal places, e.g. 15.25.) DM inventory balance Sheffield industries pay .29 per ounce (c1) eTextbook and Media List of Accounts Your answer is partially correct. Attempts: 1 of 5 used Suppose the company had instead purchased 319,400 ounces of the DM at the same price per ounce as determined in part (b) but still used 305,300 ounces for production. Recalculate the DM price and efficiency variances. DM price variance 3010 Favorable DM efficiency variance $ 1290 Unfavorable