Time Remaining: 01:15:25 Submit C This Question: 10 pts 1 of 500 complete) This

Question

Time Remaining: 01:15:25 Submit C This Question: 10 pts 1 of 500 complete) This Qulz: 50 pts poss Dayer, Inc. is a privatoly hold funibure manufacturor. For August 2014, Dwyer had tho following standards for one of ts products, a wickar chair EEB (Click the loon to view the standards.) For August 2014, Dwyer had the following costs and variances for actual production of 2,100 chairs,6,000 square yards of ingut purchased and used (Cick the eon to view the costs and variances for actual production-option 1*) variances are under the assumption that 8,500 square yards of materials were purchased, even though only 6,000 square yards were used. Suppose further that direct materials price variances are solated and traced at the time of purchase to the purchasing department rather than to the production department (Click the ion to view the costs and variances urder te assumptions 'opion 2) Prepare journal entries and post them to T-accounts for the price and officiency variances l Option 1 Prepare the joumal entry for the direct matorials price varianoe. (Record debits first,then credts. Exdude expianations from any joumal entrien.) isted under the two options. Summarize how these journal entries differ from normal-costing entries Journal Entry Date Debit Credit 1. (a) Now prepare the joumal entry for direct materials efficlency variance Choose from any list or enter any number in the input fieids and then continue to the next question. 2 3 4 5 7 8

Explanation / Answer

1) Journal entries Account title and Explanation Debit Credit Direct Materials Control $35,400 Direct Materials Price Variance $1,200                        Accounts Payable Control $36,600 To record purchase of direct materials Work-in-Process Control $37,170                    Direct Materials Efficiency Variance $1,770                    Direct Materials Control $35,400 To record direct materials used Work-in-Process Control $10,920                   Direct Manufacturing Labor Price Variance $99                   Direct Manufacturing Labor Efficiency Variance $624                   Wages Payable Control $10,197 To record liability for and allocation of direct labor costs. 2) Account title and Explanation Debit Credit Direct Materials Control $50,150 Direct Materials Price Variance $1,700                        Accounts Payable Control $51,850 To record purchase of direct materials Work-in-Process Control $37,170                    Direct Materials Efficiency Variance $1,770                    Direct Materials Control $35,400 To record direct materials used

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