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.
Homework Answers
(1)
(A)
Material price variance = actual quantity x (standard price - actual price)
= 31400 x ($4.34 - $4.54140)
= $6324 Unfavorable
Where,
Actual price = material cost paid/units of material purchased
= $142600/31400 = $4.54140
(B)
Material efficiency variance = standard price x (standard quantity - actual quantity used)
= $4.34 x (28226 - 31400)
= $13775 Unfavorable
Where,
Standard quantity = $122500/$4.34 = $28226
(2)
| Event | account title | debit | credit |
|---|---|---|---|
|
Work in process inventory Material price variance material efficiency variance Accounts payable |
$122500 $6324 $13775 . |
. . . $142600 |
Add Answer to:
Information on Bowgie Chemicals direct materials costs
follows:
Actual quantities of direct materials used
31,400
Actual...
Information on Bowgie Chemicals direct materials costs follows. Actual quantities of direct materials used Actual costs...
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 31,900 Actual...
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...
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