It was the end of the third quarter for Skysong 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, $6\mathrm{.}4$ ounces of acetic acid

at a budgeted price of $$0\mathrm{.}20$ 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, $254,600$ ounces of acetic acid were purchased on account and used to make

$38,000$ gallons of vinegar. The purchase price was $$43,282.$

$($a$1)$

Your answer is correct.

Determine the DM price and efficiency variances for the third quarter based on the information above.

DM price variance

$

Favorable

DM efficiency variance

$

eTextbook and Media

List of Accounts

Attempts: $3$ of $4$ used

$($a$2)$

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 $0$ for the

amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

$($To record purchase of DM$)$

$($To record use of DM$)$