The following direct materials variance analysis was performed forSmithson.1(Clickthe icon to view the materials variance analysis.) Read therequirements2. Requirement 1. RecordSmithson'sdirect materials journal entries. Assume purchases were made on account. Begin by journalizing the purchase of direct materials, including the related variance. (Prepare a single compound journal entry. Record debits first, then credits. Select the explanations on the last line of the journal entry table.) DateAccounts and ExplanationDebitCredit (1) Raw Materials Inventory (2) Raw Materials Inventory (3) Accounts Payable (4) Work-in-Process Inventory (5) Purchased direct materials. Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry. Record debits first, then credits. Select the explanations on the last line of the journal entry table.) DateAccounts and ExplanationDebitCredit (6) (7) (8) (9) (10) Requirement 2. Explain what management will do with this variance information. It(11) enough forSmithson'smanagement to know that a variance occurred. They(12) why it occurred. Each of the direct materials variances will be(13) 1: Data TableAC × AQ SC × AQ SC × SQ$0.65 per pounds $0.35 per pounds $0.35 per pound× × ×7,600 pounds 7,600 pounds 7,200 pounds$4,940 $2,660 $2,520 Cost Efficiency Variance Variance $2,280 U $140 U 2: Requirements1.RecordSmithson'sdirect materials journal entries. Assume purchases were made on account.2.Explain what management will do with this variance information.(1) Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(2) Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(3) Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(4) Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(5) Completed goods transferred. Cost of sales at standard cost. Purchased direct materials. To adjust Manufacturing Overhead. Used direct materials.(6) Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(7) Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(8) Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(9) Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(10) Completed goods transferred. Cost of sales at standard cost. Purchased direct materials. To adjust Manufacturing Overhead. Used direct materials.(11) is is not(12) do not need to know must know(13) investigated and information wil be obtained from the managers responsible for each. investigated and the managers responsible for each variance will be blamed. noted and no further investigations are necessary.

Name: The following direct materials variance analysis was performed forSmit
Uploaded: 2024-03-20T06:33:06.000Z
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Description: The following direct materials variance analysis was performed forSmithson.1(Clickthe icon to view the materials variance analysis.) Read therequirements2. Requirement 1. RecordSmithson'sdirect materials journal entries. Assume purchases were made

Question

The following direct materials variance analysis was performed forSmithson.1​(Clickthe icon to view the materials variance​ analysis.) Read therequirements2. Requirement 1. RecordSmithson'sdirect materials journal entries. Assume purchases were made on account. Begin by journalizing the purchase of direct​ materials, including the related variance. ​(Prepare a single compound journal entry. Record debits​ first, then credits. Select the explanations on the last line of the journal entry​ table.)  DateAccounts and ExplanationDebitCredit (1) Raw Materials Inventory   (2) Raw Materials Inventory     (3) Accounts Payable     (4) Work-in-Process Inventory     (5) Purchased direct materials.  ​Now, journalize the usage of direct​ materials, including the related variance. ​(Prepare a single compound journal entry. Record debits​ first, then credits. Select the explanations on the last line of the journal entry​ table.)  DateAccounts and ExplanationDebitCredit (6)     (7)       (8)       (9)       (10)    Requirement 2. Explain what management will do with this variance information. It(11)   enough forSmithson'smanagement to know that a variance occurred. They(12)   why it occurred. Each of the direct materials variances will be(13)   1: Data TableAC × AQ   SC × AQ    SC × SQ$0.65 per pounds   $0.35 per pounds   $0.35 per pound×   ×    ×7,600 pounds  7,600 pounds    7,200 pounds$4,940   $2,660    $2,520                            Cost   Efficiency    Variance   Variance    $2,280 U   $140 U  2: Requirements1.RecordSmithson'sdirect materials journal entries. Assume purchases were made on account.2.Explain what management will do with this variance information.(1)    Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(2)    Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(3)    Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(4)    Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(5)    Completed goods transferred. Cost of sales at standard cost. Purchased direct materials. To adjust Manufacturing Overhead. Used direct materials.(6)    Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(7)    Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(8)    Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(9)    Accounts Payable Cost of Goods Sold Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Manufacturing Overhead Raw Materials Inventory Work-in-Process Inventory(10)    Completed goods transferred. Cost of sales at standard cost. Purchased direct materials. To adjust Manufacturing Overhead. Used direct materials.(11)   is  is not(12)   do not need to know  must know(13)   investigated and information wil be obtained from the managers responsible for each.  investigated and the managers responsible for each variance will be blamed.  noted and no further investigations are necessary.

Accepted Answer

Smithson's direct materials variance analysis was performed as follows:

AC × AQ

SC ×…

Date	Accounts and Explanation	Debit	Credit
	(1) Raw Materials Inventory
	(2) Raw Materials Inventory
			(3) Accounts Payable
			(4) Work-in-Process Inventory
			(5) Purchased direct materials.

1.	Record Smithson's direct materials journal entries. Assume purchases were made on account.
2.	Explain what management will do with this variance information.

The following direct materials variance analysis was performed for Smithson. 1​(Click the icon to view the materials variance​ analysis.) Read the requirements2.

The following direct materials variance analysis was performed for Smithson. 1(Click the icon to view the materials variance analysis.) Read the requirements2.