Maxwell Co. collected the following information about its production activities for the current year.a. Compute the direct materials price and quantity variances and indicate whether each is favorable or unfavorable.b. Prepare the journal entry to record the issuance of direct materials into production.Actual costs and quantities:Direct materials used 95,000 lbs. @ $6.30 per lb.Units completed during the year, 50,000 unitsStandard costs and quantities:Price per lb. of direct material, $6.05Two lbs. of direct material per unit
What will be an ideal response?
| AQ ? AP | 95,000 lbs. ? $6.30/1b. ……………... | $598,500 | ? |
| AQ ? SP | 95,000 lbs. ? $6.05/1b ……………… | 574,750 | ? |
| ? | Direct materials price variance ……. | $ 23,750 | U |
| ? | ? | ? | ? |
| AQ ? SP | 95,000 lbs. ? $6.05/1b. ……………… | $574,750 | ? |
| SQ ? SP | 100,000 lbs.* ? $6.05/1b ……………. | 605,000 | ? |
| ? | Direct materials quantity variance …. | $ 30,250 | F |
| Work in process inventory …………….. | 605,000 | ? |
| Direct materials price variance …………. | 23,750 | ? |
| Direct materials quantity variance …. | ? | 30,250 |
| Raw materials inventory …………… | ? | 598,500 |
You might also like to view...
The overall subject of a message is called what?
A) Unifier B) Main idea C) Handle D) Topic E) Organizational cue
In the ratio funded debt to operating property for a utility, construction in progress is a component of operating property
Indicate whether the statement is true or false
Which of the following is an example of a routine business message that provides instructions?
A) Notifying customers of a price increase B) Explaining how to complete a requisition form C) Confirming a project deadline with a client D) Informing a coworker that you have the data she requested E) Requesting assistance on a project from a colleague
Under Rule 10b-5, which is true about insiders?
A) Employees at all levels in a company are insiders, as well as lawyers, accountants, and consultants even when hired only on a temporary basis. B) Officers and directors are insiders, but lawyers or accountants that are hired only on a temporary basis are not insiders. C) Agents hired on a temporary nonemployee basis to provide services to the company are not insiders. D) Officers and directors are insiders, but employees who are not officers are not insiders.