Question

Check my work Check My Work button is now enabled3Item 9Item 9 Part 2 of 2 1.12 points Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Hart Company made 3,900 bookshelves using 30,000 board feet of wood costing $390,000. The company's direct materials standards for one bookshelf are 8 board feet of wood at $12.90 per board foot. Exercise 23-14A Materials variances recorded and closed LO P5 Hart Company records standard costs in its accounts and its materials variances in separate accounts when it assigns materials costs to the Work in Process Inventory account. (1) Prepare the journal entry that both charges the direct materials costs to the Work in Process Inventory account and records the materials variances in their proper accounts. (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.

journal entry plz

Answer 1

Solution :

Direct Material Cost Variance
Actual Cost					Standard cost for actual quantity					Standard Cost
AQ *	AP =				AQ *	SP =				SQ *	SP =
30000	$13.00	$390,000.00			30000	$12.90	$387,000.00			31200	$12.90	$402,480.00
			$3,000.00	U				$15,480.00	F
			Direct Material Price Variance					Direct Material Qty variance
Direct material price variance					$3,000.00	U
Direct material quantity variance					$15,480.00	F
Direct material cost variance					$12,480.00	F

Journal Entries - Hart Company
Event	Particulars	Debit	Credit
1	Work in Process Inventory Dr	$402,480.00
	Direct material Price variance Dr	$3,000.00
	To Accounts payable		$390,000.00
	To Direct material quantity variance		$15,480.00
	(To record purchase and use of material)
2	Direct material quantity variance Dr	$15,480.00
	To Direct material price variance		$3,000.00
	To Cost of goods sold		$12,480.00
	(To close material variance to cost of goods sold)