Chapter 10 Appendix B Journal Entries to Record Variances
10B–34
44. The Lahn Company produces and sells a single product. Standards have been established
for the product as follows:
Direct materials: 5 pounds @ $3.50 per pound = $17.50
Direct labor: 3 hours @ $5.50 per hour = $16.50
Actual cost and usage figures for the past month follow:
Required:
Prepare journal entries to record:
a. The purchase of raw materials.
b. The usage of raw materials in production.
c. The incurrence of direct labor cost.
Chapter 10 Appendix B Journal Entries to Record Variances
Chapter 10 Appendix B Journal Entries to Record Variances
10B–36
45. The following standards have been established for a raw material used in the production
of product O99:
The following data pertain to a recent month’s operations:
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
c. Prepare journal entries to record the purchase and use of the raw material during the month.
(All raw materials are purchased on account.)
Chapter 10 Appendix B Journal Entries to Record Variances
Chapter 10 Appendix B Journal Entries to Record Variances
46. The standards for product J42 call for 3.6 feet of a raw material that costs $14.00 per feet.
Last month, 5,500 feet of the raw material were purchased for $76,175. The actual output of
the month was 1,260 units of product J42. A total of 4,800 feet of the raw material were used
to produce this output.
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
c. Prepare journal entries to record the purchase and use of the raw material during the month.
(All raw materials are purchased on account.)
Chapter 10 Appendix B Journal Entries to Record Variances
47. Dullen Corporation has provided the following data concerning its most important raw
material, compound I51D:
The raw material was purchased on account.
Required:
a. Record the purchase of the raw material in a journal entry.
b. Record the use of the raw material in production in a journal entry.
Chapter 10 Appendix B Journal Entries to Record Variances
48. Compound Y23Z is used by Mcfadin Corporation to make one of its products. The
standard cost of compound Y23Z is $38.70 per ounce and the standard quantity is 4.6 per unit
of output. Data concerning the compound in the most recent month appear below:
The raw material was purchased on account.
Required:
a. Record the purchase of the raw material in a journal entry
b. Record the use of the raw material in production in a journal entry.
Chapter 10 Appendix B Journal Entries to Record Variances
49. The following direct labor standards have been established for product H91D:
The following data pertain to the most recent month’s operations during which 3,860 units of
product H91D were made:
Required:
a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?
c. Prepare a journal entry to record direct labor costs during the month, including the direct
labor variances.
Chapter 10 Appendix B Journal Entries to Record Variances
50. The standards for product A22G specify 8.2 direct labor-hours per unit at $11.90 per
direct labor-hour. Last month 200 units of product A22G were produced using 1,700 direct
labor-hours at a total direct labor wage cost of $20,060.
Required:
a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?
c. Prepare a journal entry to record direct labor costs during the month, including the direct
labor variances.
Chapter 10 Appendix B Journal Entries to Record Variances
51. Wahlen Corporation has provided the following data concerning its direct labor costs for
November:
Required:
Prepare the journal entry to record the incurrence of direct labor costs.
Chapter 10 Appendix B Journal Entries to Record Variances
52. The direct labor standards at Pihl Corporation are $11.70 per direct labor-hour (DLH) and
7.2 DLHs per unit of output. In May, 1,300 units were produced, the actual wage rate was
$12.00 per DLH, and the actual hours were 9,460 DLHs.
Required:
Prepare the journal entry to record the incurrence of direct labor costs.