Option 1.

Post the journal entries you prepared to the following T-accounts. (Abbreviation used: Mfg.=Manufacturing)

Option 2

Dawson, Inc. is a privately held furniture manufacturer. For August 2017, Dawson had the following standards for one of its products, a wicker chair: E (Click the icon to view the standards.) (Click the icon to view the costs and variances for actual production "option 1".) (Click the icon to view the costs and variances under the assumptions "option 2".) Requirement Prepare journal entries and post them to T-accounts for the price and efficiency variances listed under the two options. Summarize how these journal entries differ from normal-costing entries. Option 1. Prepare the journal entry for the direct materials price variance. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Debit Credit 1. (a) Journal Entry Accounts Direct Materials Control Direct Materials Price Variance Accounts Payable Control 34,100 1,240 35,340 Now prepare the journal entry for direct materials efficiency variance. Journal Entry Choose from any list or enter any number in the input fields and then click Check Answer. 4 parts 4 remaining Clear All Check Answer Standard Costs and Usage - X Direct materials Direct manufacturing labor Standards per chair 3 square yards of input at $5.50 per square yard 0.5 hour of input at $10.50 per hour Print Done 0 Option 1 - X For August 2017, Dawson had the following costs and variances for actual production of 2,200 chairs, 6,200 square yards of input purchased and used: Option 1: Actual production Actual input Flexible Actual costs Budgeted price budget costs $ 35,340 $ 34,100 $ 36,300 9,844 9,660 11,550 Direct materials Direct manufacturing labor Price Efficiency variances variances Direct materials $ $ 1,240 U 184 U 2,200 F 1,890 F Direct manufacturing labor Print Done i Option 2 - X The following variances are under the assumption that 8,700 square yards of materials were purchased, even though only 6,200 square yards were used. Suppose further that direct materials price variances are isolated and traced at the time of purchase to the purchasing department rather than to the production department. Option 2: Increase in purchases Actual input Flexible Direct materials: Actual costs Budgeted price budget costs Purchasing $ 49,590 $ 47,850 Production 34,100 $ 36,300 Price variance 1,740 U Efficiency variance $ 2,200 F Direct materials $ Print Done Date Accounts Devil veuil 1. (a) Direct Materials Control Direct Materials Price Variance Accounts Payable Control 34,100 1,240 35,340 Now prepare the journal entry for direct materials efficiency variance. Journal Entry Date Credit Accounts Work-in-Process Control Debit 36,300 1. (b) Direct Materials Control Direct Materials Efficiency Variance 34,100 2,200 Choose from any list or enter any number in the input fields and then click Check Answer. A parts 4 remaining Clear All Direct Materials Control Direct Materials Efficiency Variance 34,100 2,200 Next, prepare the journal entry for direct manufacturing labor price and efficiency variances. Journal Entry Date Accounts Credit 1. (C) Debit 11,550 184 Work-in-Process Control Direct Manufacturing Labor Price Variance Wages Payable Control Direct Manufacturing Labor Efficiency Variance 9,844 1,890 Dnet the inurnal antriec vou nongrar to the followina Tarrunte (Abhraviation licer: Mfr -Manufacturinn Choose from any list or enter any number in the input fields and then click Check Answer. vvays rayavic VUITTON Direct Manufacturing Labor Efficiency Variance 3,074 1,890 Post the journal entries you prepared to the following T-accounts. (Abbreviation used: Mfg.=Manufacturing) Direct Materials Control Direct Materials Price Variance Direct Materials Efficiency Variance Work-in-Process Control Direct Mfg. Labor Price Variance Direct Mfg. Labor Efficiency Variance Choose from any list or enter any number in the input fields and then click Check Answer. Work-in-Process Control Direct Mfg. Labor Price Variance Direct Mfg. Labor Efficiency Variance Wages Payable Control Accounts Payable Control Choose from any list or enter any number in the input fields and then click Check Answer. 1 parts romaining Clear All Dawson, Inc. is a privately held furniture manufacturer. For August 2017, Dawson had the following standards for one of its products, a wicker chair: E (Click the icon to view the standards.) (Click the icon to view the costs and variances for actual production "option 1".) (Click the icon to view the costs and variances under the assumptions "option 2".) Requirement Prepare journal entries and post them to T-accounts for the price and efficiency variances listed under the two options. Summarize how these journal entries differ from normal-costing entries. Option 1. Prepare the journal entry for the direct materials price variance. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Debit Credit 1. (a) Journal Entry Accounts Direct Materials Control Direct Materials Price Variance Accounts Payable Control 34,100 1,240 35,340 Now prepare the journal entry for direct materials efficiency variance. Journal Entry Choose from any list or enter any number in the input fields and then click Check Answer. 4 parts 4 remaining Clear All Check Answer Standard Costs and Usage - X Direct materials Direct manufacturing labor Standards per chair 3 square yards of input at $5.50 per square yard 0.5 hour of input at $10.50 per hour Print Done 0 Option 1 - X For August 2017, Dawson had the following costs and variances for actual production of 2,200 chairs, 6,200 square yards of input purchased and used: Option 1: Actual production Actual input Flexible Actual costs Budgeted price budget costs $ 35,340 $ 34,100 $ 36,300 9,844 9,660 11,550 Direct materials Direct manufacturing labor Price Efficiency variances variances Direct materials $ $ 1,240 U 184 U 2,200 F 1,890 F Direct manufacturing labor Print Done i Option 2 - X The following variances are under the assumption that 8,700 square yards of materials were purchased, even though only 6,200 square yards were used. Suppose further that direct materials price variances are isolated and traced at the time of purchase to the purchasing department rather than to the production department. Option 2: Increase in purchases Actual input Flexible Direct materials: Actual costs Budgeted price budget costs Purchasing $ 49,590 $ 47,850 Production 34,100 $ 36,300 Price variance 1,740 U Efficiency variance $ 2,200 F Direct materials $ Print Done Date Accounts Devil veuil 1. (a) Direct Materials Control Direct Materials Price Variance Accounts Payable Control 34,100 1,240 35,340 Now prepare the journal entry for direct materials efficiency variance. Journal Entry Date Credit Accounts Work-in-Process Control Debit 36,300 1. (b) Direct Materials Control Direct Materials Efficiency Variance 34,100 2,200 Choose from any list or enter any number in the input fields and then click Check Answer. A parts 4 remaining Clear All Direct Materials Control Direct Materials Efficiency Variance 34,100 2,200 Next, prepare the journal entry for direct manufacturing labor price and efficiency variances. Journal Entry Date Accounts Credit 1. (C) Debit 11,550 184 Work-in-Process Control Direct Manufacturing Labor Price Variance Wages Payable Control Direct Manufacturing Labor Efficiency Variance 9,844 1,890 Dnet the inurnal antriec vou nongrar to the followina Tarrunte (Abhraviation licer: Mfr -Manufacturinn Choose from any list or enter any number in the input fields and then click Check Answer. vvays rayavic VUITTON Direct Manufacturing Labor Efficiency Variance 3,074 1,890 Post the journal entries you prepared to the following T-accounts. (Abbreviation used: Mfg.=Manufacturing) Direct Materials Control Direct Materials Price Variance Direct Materials Efficiency Variance Work-in-Process Control Direct Mfg. Labor Price Variance Direct Mfg. Labor Efficiency Variance Choose from any list or enter any number in the input fields and then click Check Answer. Work-in-Process Control Direct Mfg. Labor Price Variance Direct Mfg. Labor Efficiency Variance Wages Payable Control Accounts Payable Control Choose from any list or enter any number in the input fields and then click Check Answer. 1 parts romaining Clear All