Rip Tide Company manufactures surfboards. Its standard cost information follows

Question

Rip Tide Company manufactures surfboards. Its standard cost information follows Standard Standard Price (Rate) Standard Direct materials (fiberglass) Direct labor Variable manufacturing overhead (based on Quantity 19.8 sq. ft 11.1 hrs 11.1 hrs. $4.7 per sq. ft S 15 per hr $ 5 per hr Unit Cost $93.06 166.50 55.50 direct labor hours) Fixed manufacturing overhead ($31,000 116.98 265 units) Rip Tide has the following actual results for the month of June Number of units produced and sold Number of square feet of fiberglass used Cost of fiberglass used Number of labor hours Direct labor cost Variable overhead cost Fixed overhead cost 190 4,100 $21,320 2,039 $32,216 $ 9.379 $21,500 worked Required 1 & 2. Prepare the journal entries to record the direct materials, direct labor costs and related variances for Rip Tide. Assume the company purchases raw materials as needed and does not maintain any ending inventories. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations and round your final answers to nearest dollar amount.) View transaction list Journal entry worksheet 2 Record the entry for direct materials costs and variances Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Explanation / Answer

Journal entry :

Date account and explanation debit credit Work in process (190*93.06) 17681 Material quantity variance 1589 Material price variance 2050 Direct material 21320 (To record direct material and variance) Work in process (190*166.50) 31635 Direct labour rate variance 1631   Direct labour efficiency variance 1050 Direct labour 32216 (To record direct labour and variance)

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