Pentyl Company manufactures t-shirts. During the year, it manufactured 100,000 t-shirts, using 3 hours of direct labor at a rate of $7 per hour. The materials and labor standards for manufacturing the t-shirts are as follows: Direct materials (5 yards of fabric @ $4 per yard)$20Direct labor (2 hours @ $8.00 per hour)16It took Pentyl 600,000 yards at $3.50 per yard to make the 100,000 t-shirts.What is the entry to record the issuance and usage of materials? a.debit Work in Process, 6,500,000debit Materials Usage Variance, 250,000credit Materials, 5,400,000 b.debit Work in Process, 3,200,000credit Materials Usage Variance, 430,000credit Materials, 3,560,000 c.debit Work in Process, 2,000,000debit Materials Usage Variance, 400,000credit Materials, 2,400,000 d.debit Work in Process, 8,100,000debit Materials Usage Variance, 400,000credit Materials, 1,500,000

Work in process is $ 2000000 Materials Usage variance is $ 400000

Answered: Pentyl Company manufactures t-shirts.…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 4PB: A company bought 45,000 pounds of plastic pellets to make DVDs at a cost of $9,900. The standard...

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Pentyl Company manufactures t-shirts. During the year, it manufactured 100,000 t-shirts, using 3 hours of direct labor at a rate of $7 per hour. The materials and labor standards for manufacturing the t-shirts are as follows:

Direct materials (5 yards of fabric @ $4 per yard)	$20
Direct labor (2 hours @ $8.00 per hour)	16

It took Pentyl 600,000 yards at $3.50 per yard to make the 100,000 t-shirts.

What is the entry to record the issuance and usage of materials?

	a.	debit Work in Process, 6,500,000 debit Materials Usage Variance, 250,000 credit Materials, 5,400,000
	b.	debit Work in Process, 3,200,000 credit Materials Usage Variance, 430,000 credit Materials, 3,560,000
	c.	debit Work in Process, 2,000,000 debit Materials Usage Variance, 400,000 credit Materials, 2,400,000
	d.	debit Work in Process, 8,100,000 debit Materials Usage Variance, 400,000 credit Materials, 1,500,000

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