Waddell Productions makes separate journal entries standard cost system f place

Question

Waddell Productions makes separate journal entries standard cost system f place for all cost accounting-related activities. It uses a or all manufacturing items. For the month of june, the following activities have taken Direct Manufacturing Materials Purchased (on account) Direct Manufacturing Materials Used Direct Materials Price Variance (at time of purchase) Direct Materials Efficiency Variance Direct Manufacturing Labor Price Variance Direct Manufacturing Labor Efficiency Variance Wages Payable $300,000 250,000 10,000 unfavorable 15,000 favorable 6,000 favorable 4,000 favorable 170,000 Required: Record the necessary journal entries to isolate A. the Direct Materials price variance, B. the Direct Materials efficiency variance C the Direct Labor price and efficiency variance

Explanation / Answer

Account Name Debit Credit A Materials 290,000 Materials Price Variance          10,000 Accounts payable        300,000 B Work in progress      265,000 Materials Efficiency Variance            15,000 Materials 250,000 C Work in progress 180,000 Labor rate variance              4,000 Labor efficiency variance              6,000 Wages payable 170,000

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