Question

hart company made 3,300 shelves using 22,300 pounds of wood costing $303,280. the companys direct materials standards for one shelf are 8 pounds of wood at $13.50 per pound
exercise 21 - 14a (algo) recording and closing materials variances lo p6
hart company uses a standard costing system. prepare the journal entry to charge direct materials costs to work in process inventory and record the direct materials variances.
view transaction list
journal entry worksheet
record direct materials price and quantity variances.
note: enter debits before credits.

Explanation:

Step1: Calculate standard quantity

Standard quantity = \(3,300\times8 = 26,400\) pounds

Step2: Calculate standard cost

Standard cost = \(26,400\times13.50=356,400\)

Step3: Calculate actual price per pound

Actual price per pound=\(\frac{303,280}{22,300}=13.6\)

Step4: Calculate materials price variance

Materials price variance=\((13.6 - 13.50)\times22,300 = 2,230\) (unfavorable)

Step5: Calculate materials quantity variance

Materials quantity variance=\((22,300 - 26,400)\times13.50=-55,350\) (favorable)

Step6: Journal entry

Work in Process Inventory is debited for the standard cost (\(356,400\)). Raw Materials Inventory is credited for the actual cost (\(303,280\)). Materials Price Variance is debited (unfavorable) and Materials Quantity Variance is credited (favorable)

Answer:

Transaction	General Journal	Debit	Credit
	Materials Price Variance	\(2,230\)
	Raw Materials Inventory		\(303,280\)
	Materials Quantity Variance		\(55,350\)