Robin Company purchased and used 500 pounds of direct materials to produce a pro

Question

Robin Company purchased and used 500 pounds of direct materials to produce a product with a 520 pound standard direct materials requirement. The standard materials price is $1.90 per pound. The actual materials price was $2.00 per pound.

Robin records standards and variances in the general ledger.

1. Prepare the journal entries to record the purchase of the materials. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".

   

  

  

  

  

  

  

  

  

  

2. Prepare the journal entries to record the material entering production. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".

   

  

  

  

  

  

  

  

  

  

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1. Prepare the journal entries to record the purchase of the materials. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".

   

  

  

  

  

  

  

  

  

  

Explanation / Answer

1. The journal entries to record the purchase of the materials.

Material (520 *1.90) $ 950 Dr.

Direct Material variance (1000-950) $ 50 Dr.

Account payable (500*2.00) $ 1000 Cr.

2.The journal entries to record the material entering production

Work in process (520*1.90) $ 988 Dr.

Material $ 950 Cr.

Direct material quantity variance (988-950) $ 38 Cr.

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