Information on Bowgie Chemicals direct materials costs follows.
Actual quantities of direct materials used | 30,800 | ||
Actual costs of direct materials used | $ | 137,800 | |
Standard price per unit of direct materials | $ | 4.28 | |
Flexible budget for direct materials | $ | 121,300 | |
Bowgie Chemicals has no materials inventories.
Required:
a. Prepare a short report for management showing Bowgie Chemicals’s direct materials price and efficiency variances.
b. (Appendix) Prepare the journal entries to record the purchase and use of the direct materials using standard costing.
Actual quantities of direct materials used 30,800
Actual costs of direct materials used $137,800
Standard price per unit of direct materials $4.28
Flexible budget for direct materials $121,300
RA) 137,800/ 30,800= 4.474025974
(4.474025974- 4.28)* 30,800= 5,975.9999992
or Answer: 5,976 U for DM price variance
137,800- 121,300= 16,500
16,500- 5,976= 10,524 U for DM efficiency variance
RB) WIP inventory DR 121,300
Materials price variance DR 5,976 from RA
Materials efficiency variance DR 10,524= 137,800- 121,300- 5,976
Accounts payable CR 137,800
Information on Bowgie Chemicals direct materials costs follows. Actual quantities of direct materials used 30,800 Actual costs of direct materials used $ 137,800 Standard price per unit of direct materials $ 4.28 Flexible budget for di
Information on Bowgie Chemicals direct materials costs follows. Actual quantities of direct materials used30,800Actual costs of direct materials used$137,800Standard price per unit of direct materials$4.28Flexible budget for direct materials$121,300 Bowgie Chemicals has no materials inventories. Required:a. Prepare a short report for management showing Bowgie Chemicals’s direct materials price and efficiency variances.b. (Appendix) Prepare the journal entries to record the purchase and use of the direct materials using standard costing.
Information on Bowgie Chemicals direct materials costs follows. Actual quantities of direct materials used 31,900 Actual costs of direct materials used $ 146,600 Standard price per unit of direct materials $ 4.39 Flexible budget for direct materials $ 123,500 Bowgie Chemicals has no materials inventories. Required: a. Prepare a short report for management showing Bowgie Chemicals’s direct materials price and efficiency variances. b. (Appendix) Prepare the journal entries to record the purchase and use of the direct materials using standard...
Information on Bowgie Chemicals direct materials costs follows. Actual quantities of direct materials used Actual costs of direct materials used Standard price per unit of direct materials Flexible budget for direct materials 31,600 $144,200 $ 4.36 $122,900 Bowgie Chemicals has no materials inventories. Required: a. Prepare a short report for management showing Bowgie Chemicals's direct materials price and efficiency variances. b. (Appendix) Prepare the journal entries to record the purchase and use of the direct materials using standard costing. Complete...
Information on Bowgie Chemicals direct materials costs
follows:
Actual quantities of direct materials used
31,400
Actual costs of direct materials used
$
142,600
Standard price per unit of direct materials
$
4.34
Flexible budget for direct materials
$
122,500
Bowgie Chemicals has no materials inventories.
Required: a. Prepare a short report for management showing Bowgie Chemicals's direct materials price and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is...
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