Exercise 23-22 Levine Inc., which produces a single product, has prepared the fo

Question

Exercise 23-22 Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the produ Direct materials (7 pounds at $2.40 per pound) Direct labor (2 hours at $12.00 per hour) During the month of April, the company manufactures 340 units and incurs the following actual costs. Direct materials purchased and used (2,420 pounds) Direct labor (710 hours) Journalize the entries to record the materials and labor variances. (Credit account titles are automatically indent $16.80 $24.00 $6,292 $8,378 when amount is etered. Do not indent manually. Round answers to O decimal places, e.g. 125.) Account Titles and Explanation Debit Grellii To record materials price variance)

Explanation / Answer

Journal entry :

Date accounts & expalanation debit credit Direct material (2420*2.4) 5808 Material price variance 484 Account payable (To record material price variance) 6292 Work in process (340*7*2.4) 5712 Material quantity variance 96 Direct material (2420*2.4) 5808 (To record material quantity variance) Direct labour (710*12) 8520 Labour rate variance 142 Wages payable 8378 (To record labour rate variance) Work in process (340*24) 8160 Labour efficiency variance 360 Direct labour 8520 (To record labour quantity variance)

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