E23-5 The standard cost of Product B manufactured by Pharrell Company includes three units of direct materials at $5.00 per unit. During June, 29,000 units of direct materials are purchased at a cost of $4.70 per unit, and 29,000 units of direct materials are used to produce 9,400 units of Product B. Instructions (a) Compute the total materials variance and the price and quantity variances. (b) Repeat (a), assuming the purchase price is $5.15 and the quantity purchased and used is 28,000 units.

E23-5 The standard cost of Product B manufactured by Pharrell Company includes three units of direct materials at $5.00 per unit. During June, 29,000 units of direct materials are purchased at a cost of $4.70 per unit, and 29,000 units of direct materials are used to produce 9,400 units of Product B. Instructions (a) Compute the total materials variance and the price and quantity variances. (b) Repeat (a), assuming the purchase price is $5.15 and the quantity purchased and used is 28,000 units.

Name: E23-5 The standard cost of Product B manufactured by Pharrell Company
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Description: E23-5 The standard cost of Product B manufactured by Pharrell Company includes threeunits of direct materials at $5.00 per unit. During June, 29,000 units of direct materialsare purchased at a cost of $4.70 per unit, and 29,000 units of direct mater

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A5
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A company's standards for its product are 8 pounds of direct materials at $13.20 per pound. For this period, the company produced 3,240 units, using 26,520 pounds of direct materials costing $358,020. The company uses a standard costing system. Prepare the entry to record direct materials variances and charge direct material costs to Work in Process Inventory. View transaction list Journal entry worksheet < Record direct materials and charge direct material costs to Work in Process Inventory. Note: Enter debits before credits. Transaction 1 General Journal Work in process inventory Direct materials price variance Direct materials quantity variance Record entry Clear entry Debit 358,020 Credit View general journal
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The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used 3,900 Ibs. Actual unit price of direct materials $4.30 per Ib. Units of finished product manufactured 935 units Standard direct materials per unit of finished product 4 Ibs. Direct materials quantity variance-unfavorable $704 Direct materials price variance-favorable $390 Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month. If required, round your standard cost per unit answer to two decimal places. Product finished units Standard finished product for direct materials used units Deficiency of finished product for materials used units Standard cost for direct materials per unit
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