Standard cost journal entries Bellingham Company produced 15,000 units that require 2.5 standard pounds per unit at a $3.75 standard price per pound. The company actually used 36,000 pounds in production. Journalize the entry to record the standard direct materials used in production. BuyFindarrow_forward Financial & Managerial Accounting 14th Edition Carl Warren + 2 others Publisher: Cengage Learning ISBN: 9781337119207 Solutions Chapter Section BuyFindarrow_forward Financial & Managerial Accounting 14th Edition Carl Warren + 2 others Publisher: Cengage Learning ISBN: 9781337119207 Chapter 22, Problem 22.5BE Textbook Problem 77 views Standard cost journal entriesBellingham Company produced 15,000 units that require 2.5 standard pounds per unit at a$3.75 standard price per pound. The company actually used 36,000 pounds in production. Journalize the entry to record the standard direct materials used in production.

To determine

Standard cost:

In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs, and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost.

To journalize: The entry to record the standard direct materials used in production.

Explanation of Solution

Journalize the entry to record the standard direct materials used in production.

 Date Accounts and Explanation Debit ($) Credit ($) Work in process (37,500 lb (1)×\$3.75) 140,625 Direct materials quantity variance (2) 5,625 Materials    (3) 135,000 (To record the standard direct materials used in production)

Table (1)

Working notes:

Standard quantity = No of units required ×Standard pounds per unit= 15,000 units × £2.5=37,500lb (1)

[Direct materials quantity variance

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