Record the journal entries for the purchase and use of DM under standard costing. (Credit account titles are automatically inde when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record purchase of DM) (To record use of DM) Search Debit Credit 22
Record the journal entries for the purchase and use of DM under standard costing. (Credit account titles are automatically inde when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record purchase of DM) (To record use of DM) Search Debit Credit 22
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 6CE: Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following...
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Transcribed Image Text:*
Record the journal entries for the purchase and use of DM under standard costing. (Credit account titles are automatically inde
when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts. List all debit entries before credit entries.)
Account Titles and Explanation
(To record purchase of DM)
(To record use of DM)
$
4
R
F
96
5
T
6
O Search
Y
G H
&
7
U
4+
*
J
8
-
11
(
9
Debit
K
O
► 11
)
O
L
P
{
+
[
Credit
prt sc
←
delete
![y
It was the end of the third quarter for Marigold Industries. There had been some discussion in prior quarters about best practices.
related to carrying ending inventory of its key DM, acetic acid, for making vinegar. Per established standards, 7.1 ounces of acetic acid
at a budgeted price of $0.30 per ounce were needed for each gallon of vinegar (128 ounces). The new production manager wants to
follow lean practices and buy only what is needed for production, while the former production manager preferred to keep some
inventory on hand for emergencies. For the third quarter, 316,800 ounces of acetic acid were purchased on account and used to make
44,000 gallons of vinegar. The purchase price was $88,704.
(a1)
Determine the DM price and efficiency variances for the third quarter based on the information above.
DM price variance
$
Your answer is correct.
DM efficiency variance $
eTextbook and Media
4
R
F
V
%
5
-T
G
B
$
6
O Search
&
4-
7
YU
H J
N
*
6336
1320
00
8
3
T
(
K
Favorable
Unfavorable
9
<
O
)
O
P
:
;
{
Che
[
44
=
Assistance Used
prt sc
}
←
]
delete
backspace
3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d5d8571-a566-48dd-93ba-2ac5e7bc1950%2F9f2ac041-b1b2-47db-8e83-b1af97243a79%2Fz4gkn4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:y
It was the end of the third quarter for Marigold Industries. There had been some discussion in prior quarters about best practices.
related to carrying ending inventory of its key DM, acetic acid, for making vinegar. Per established standards, 7.1 ounces of acetic acid
at a budgeted price of $0.30 per ounce were needed for each gallon of vinegar (128 ounces). The new production manager wants to
follow lean practices and buy only what is needed for production, while the former production manager preferred to keep some
inventory on hand for emergencies. For the third quarter, 316,800 ounces of acetic acid were purchased on account and used to make
44,000 gallons of vinegar. The purchase price was $88,704.
(a1)
Determine the DM price and efficiency variances for the third quarter based on the information above.
DM price variance
$
Your answer is correct.
DM efficiency variance $
eTextbook and Media
4
R
F
V
%
5
-T
G
B
$
6
O Search
&
4-
7
YU
H J
N
*
6336
1320
00
8
3
T
(
K
Favorable
Unfavorable
9
<
O
)
O
P
:
;
{
Che
[
44
=
Assistance Used
prt sc
}
←
]
delete
backspace
3
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