The standard cost of Product K manufactured by Moon Company includes $3$ pounds of direct materials at $$6\mathrm{.}00$ per pound. During May, $60,000$ pounds of direct materials are purchased at a cost of $$5\mathrm{.}55$ per pound, and all of the direct materials are used to produce $19,000$ units of Item $285.$

Instructions

$($a$)$ Compute the materials price and quantity variances.

$($b$)$ Journalize the purchase of the materials and the issuance of the materials, assuming a standard cost system is used.