Asked by stephan vailes on Jun 17, 2024
Verified
Jet Industries purchased 6000 units of raw material on account for $17600 when the standard cost was $18000. Later in the month Jet Industries issued 5600 units of raw materials for production when the standard units were 5800.
Instructions
Journalize the transactions for Jet Industries to account for this activity.
Raw Material
Basic materials that are used in the production process to create goods or finished products.
Standard Cost
A predetermined cost of manufacturing a single unit or a number of units during a specific time period for budgeting and financial control.
Journalize
The process of recording transactions in the journal of a company, detailing the financial activities.
- Apply standard costing methods to journalize transactions.
Verified Answer
KA
Keren AlvarezJun 18, 2024
Final Answer :
(a)
Raw Materials Inventory 18,000 Materials Price Variance400 Accounts Payable 17,600\begin{array}{llr} \text { Raw Materials Inventory } &18,000\\ \text { Materials Price Variance} &&400\\ \text { Accounts Payable } &&17,600\end{array} Raw Materials Inventory Materials Price Variance Accounts Payable 18,00040017,600
(b)
Work in Process Inventory (5,800×$3∗) 17,400 Materials Quantity Variance 600 Raw Materials Inventory (5,600×$3)16,800∗$3=$18.000÷6.000 units \begin{array}{llr} \text { Work in Process Inventory \( \left(5,800 \times \$ 3^{*}\right) \) } &17,400\\ \text { Materials Quantity Variance } &&600\\ \text { Raw Materials Inventory \( (5,600 \times \$ 3) \)} &&16,800\\\\ \text {\( * \$ 3=\$ 18.000 \div 6.000 \) units } &\end{array} Work in Process Inventory (5,800×$3∗) Materials Quantity Variance Raw Materials Inventory (5,600×$3)∗$3=$18.000÷6.000 units 17,40060016,800
Raw Materials Inventory 18,000 Materials Price Variance400 Accounts Payable 17,600\begin{array}{llr} \text { Raw Materials Inventory } &18,000\\ \text { Materials Price Variance} &&400\\ \text { Accounts Payable } &&17,600\end{array} Raw Materials Inventory Materials Price Variance Accounts Payable 18,00040017,600
(b)
Work in Process Inventory (5,800×$3∗) 17,400 Materials Quantity Variance 600 Raw Materials Inventory (5,600×$3)16,800∗$3=$18.000÷6.000 units \begin{array}{llr} \text { Work in Process Inventory \( \left(5,800 \times \$ 3^{*}\right) \) } &17,400\\ \text { Materials Quantity Variance } &&600\\ \text { Raw Materials Inventory \( (5,600 \times \$ 3) \)} &&16,800\\\\ \text {\( * \$ 3=\$ 18.000 \div 6.000 \) units } &\end{array} Work in Process Inventory (5,800×$3∗) Materials Quantity Variance Raw Materials Inventory (5,600×$3)∗$3=$18.000÷6.000 units 17,40060016,800
Learning Objectives
- Apply standard costing methods to journalize transactions.
Related questions
Aztec Inc'S Standard Labor Cost of Producing One Unit of ...
Total Overhead Variance. (B) Prepare the Journal Entries to Record ...
Bayas Corporation Uses Process Costing ...
Zang Co Manufactures Its Products in a Continuous Process Involving ...
A Firm Produces Its Products by a Continuous Process Involving ...