Exercise 11-13 The Macaron Cabinet Company uses a standard costing system and pr
ID: 2578123 • Letter: E
Question
Exercise 11-13 The Macaron Cabinet Company uses a standard costing system and produced 2,120 cabinets during May. The standard cost of wood is $20 per linear foot, and the standard quantity for each cabinet is 29 linear feet. During May, the company purchased 61,000 linear feet of wood for $1,159,000, and 62,300 feet were used in production The company purchases all materials on account. Your answer is partially correct. Try again Determine the material price variance and the material quantity variance. (Enter all variances as a positive number.) Material Price Variance Favorable Material Quantity Variance Unfavorable SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again Record the related journal entries for May. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit .Raw Materials Inventory 1220000 Material Price Variance Accounts Payable To record material purchases) 2· Work in Process Inventory Material Quantity Variance Raw Materials Inventory To record material used in production)Explanation / Answer
Material price variance = (standard price-actual price)actual qty
= (20*61000-1159000)
Material price variance = 61000 Favourable
Material usage variance = (standard quantity-actual quantity)standard price
= (2120*29-62300)20
Material usage variance = 16400 Unfavoruable
Journal entries :
Date accounts & explanation debit credit Raw material inventory a/c 1220000 Material price variance 61000 Account payable a/c 1159000 (To record purchase of raw material) Work in process inventory 1229600 Material quantity variance 16400 Raw material inventory 1246000 (To record material used in production)Related Questions
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