Exercise 10B-1 Recording Variances in the General Ledger LO10-5] Bliny Corporati

Question

Exercise 10B-1 Recording Variances in the General Ledger LO10-5] Bliny Corporation makes a product with the following standard costs for direct material and direct labor: Direct material: 2.50 meters at $3.10 per meter Direct labor: 0.35 hours at $13.00 per hour $7.75 $4.55 During the most recent month, 5,800 units were produced. The costs associated with the month's production of this produc t were as follows Material purchased: 12,200 meters at $2.90 per meter Material used in production: 15,100 meters Direct labor: 2,000 hours at $13.30 per hour $ 35,380 $26,600 The standard cost variances for direct material and direct labor are Materials price variance: 12,200 meters at $0.20 per meter F Materials quantity variance: 600 meters at $3.10 per meter U Labor rate variance: 2,000 hours at $O.30 per hour U Labor efficiency variance: 30 hours at $13.00 per hour F $2,440 F $1,860 U 600 U $ 390 F Required 1. Prepare the journal entry to record the purchase of materials on account for the month. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list view general journal Transaction General Journal Debit Credit Raw materials 37,820 Materials price variance Accounts payable 2,440 35,380

Explanation / Answer

Direct Labor Incurrence Account Title Dr $ Cr $ Direct Labor Expense                  26,390 Direct Labor Rate Variance                        600 Direct Labor Efficience Variance                      390 Wages Payable                26,600

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