Question

Required information The following information applies to the questions displayed below.) Hart Company made 3,020 bookshelves using 22,020 board feet of wood costing $268,644. The company's direct materials standards for one bookshelf are 8 board feet of wood at $12.10 per board foot. Hart Company uses a standard costing system (1) Prepare the journal entry to charge direct materials costs to Work in Process Inventory and record the materials variances, (2) Assume that Hart's materials variances are the only variances accumulated in the accounting period and that they are immaterial Prepare the adjusting journal entry to close the variance accounts at period end. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to charge direct materials costs to Work in Process Inventory and record the materials variances. View transaction list Journal entry worksheet

Answer 1

Please find below table useful to compute desired results: -

C D E F G H I J K А i Bookshelves 3020 2 Board used 22020 3 Wood Costing 268644 4 Direct Materials Standards 8 12.1 5 Standard cost SP AQ =B2 =C4 =B1*B4 =C4 =E9*G9 =I9*K9 =J10-F10 Direct Material Cost Variance Actual cost 8 AQ АР =B2 =B3/B2 10 =A9*C9 11 =B10-F10 12 Direct materials price variance =D11 13 Direct materials quantity/efficiency variance =H11 F 14 Direct materials total spending varaince =C13-C12 F 15 16 Transaction General Journal Debit Credit Goods in process inventory =J10 Direct material price variance =D11 19 Direct material quantity variance Raw Materials inventory =B10 (to record price and quantity variances) Direct materials Quantity variance =H11 Direct materials Price variance I=D11 Cost of goods sold =C14 (to record closing of price and quantity variances to cost of goods sold) 17 1 18 -H11

End results would be as follows: -

C D E F G H I А 1 Bookshelves 2 Board used 3 Wood Costing 4 Direct Materials Standards 3.020 22.020 268,644 8 1 12.1 Standard cost SO SP 12.1 24.160 12.1 266,442 292,336 25.894 Direct Material Cost Variance Actual cost 8 AQ AP TAQ 22.020 12.2 22,020 10 268,644 11 2.202 12 Direct materials price variance 2.202U 13 Direct materials quantity/efficiency variance 25.894 F 14 Direct materials total spending varaince 23.692 F 15 16 Transaction General Journal Debit Credit 17 Goods in process inventory 292.336 Direct material price variance 2.202 Direct material quantity variance 25,894 Raw Materials inventory 268,644 (to record price and quantity variances) 2 Direct materials Quantity variance 25,894 Direct materials Price variance 2,202 Cost of goods sold 23,692 (to record closing of price and quantity variances to cost of goods sold)