The Marx Cabinet Company uses a standard costing system and produced 2,200 cabin

Question

The Marx Cabinet Company uses a standard costing system and produced 2,200 cabinets during May. The standard cost of wood is $20 per linear foot, and the standard quantity for each cabinet is 26 linear feet. During May, the company purchased 53,500 linear feet of wood for $963,000, and 58,100 feet were used in production. The company purchases all materials on account.

Exercise 11-13 The Marx Cabinet Company uses a standard costing system and produced 2,200 cabinets during May. The standard cost of wood is $20 per linear foot, and the standard quantity for each cabinet is 26 linear feet. During May, the company purchased 53,500 linear feet of wood for $963,000, and 58,100 feet were used in production. The company purchases all materials on account. Your answer is partially correct. Try again. Determine the material price variance and the material quantity variance. (Enter all variances as a positive number.) Material Price Variance 107,000 Favorable Material Quantity Variance 18,000 Unfavorable

Explanation / Answer

Material price variance = Actual quantity ( Actual Price - Standard price)

= 53500(20-18)

= $107,000

This answer is correct. I am not sure why it doesn't accept this answer.

I hope this helps.

No. Particulars Debit Credit 1. Raw materials inventory (53500*20) 1,070,000 Accounts payable (53500*18) 963,000 Materials price variance (53500*2) 107000 2. Work in process account (2200*26*20) 1144000 Material Quantity variance (900*20) 18000 Raw Materials Inventory (58100*20) 1162000

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