Bailey's materials quantity variance for the current month was exactly one-half of its materials price variance. Both variances were unfavorable. The company's cost accountant has supplied the following standard cost information: Standard price per pound of materials Actual pounds purchased and used during the month Actual cost per pound of materials purchased and used Actual units manufactured during the month Normal productive output per month $20 1,000 pounds $ 25 700 units 800 units Required: a. Compute Bailey's materials price variance. b. Compute the standard quantity of materials allowed for producing 700 units of product. c. Record the journal entry to charge Work in Process for the cost of materials used during the month.

Bailey's materials quantity variance for the current month was exactly one-half of its materials price variance. Both variances were unfavorable. The company's cost accountant has supplied the following standard cost information: Standard price per pound of materials Actual pounds purchased and used during the month Actual cost per pound of materials purchased and used Actual units manufactured during the month Normal productive output per month $20 1,000 pounds $ 25 700 units 800 units Required: a. Compute Bailey's materials price variance. b. Compute the standard quantity of materials allowed for producing 700 units of product. c. Record the journal entry to charge Work in Process for the cost of materials used during the month.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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