SORRY- Hart Company made 4,300 bookshelves using 24,000 board feet of wood costing $271,200. The company's direct materials standards for one bookshelf are 6 board feet of wood at $11.20 per board foot.
Hart Company records standard costs in its accounts and its
materials variances in separate accounts when it assigns materials
costs to the Work in Process Inventory account.
(1) Prepare the journal entry that both charges
the direct materials costs to the Work in Process Inventory account
and records the materials variances in their proper accounts.
(2) Assume that Hart's materials variances are the
only variances accumulated in the accounting period and that they
are immaterial. Prepare the adjusting journal entry to close the
variance accounts at period-end.
Record price and quantity variances.
Note: Enter debits before credits.
|
Record closing of price and quantity variances to cost of goods sold.
Note: Enter debits before credits.
|
Direct materials price variance = AQ * (AP-SP) = 24000*((271200/24000)-11.20) = 2400 U
Direct materials efficiency variance = SP *(AQ-SQ) = 11.20*(24000-(4300*6))=20160 F
Part 1
Transaction | General Journal | Debit | Credit |
1. | goods in process inventory | 288960 | |
Direct materials price variance | 2400 | ||
Direct materials quantity variance | 20160 | ||
Raw materials inventory | 271200 |
Part 2
Transaction | Genera Journal | Debit | Credit |
1. | Direct materials quantity variance | 20160 | |
Direct materials price variance | 2400 | ||
Cost of goods sold | 17760 |
Get Answers For Free
Most questions answered within 1 hours.