Asked by Khalifa Al Romaithi on May 21, 2024
Verified
Rosser Company records standard costs and variances in its accounts. Rosser Company produces a container that requires 4 yards of material per unit. The standard price of one yard of material is $4.50. During the month, 9,500 chairs were manufactured using 37,300 yards of material.
Journalize the entry to record the direct materials used in production.
Standard Price
The predetermined cost of acquiring goods and services, often used in budgeting and cost control.
Direct Materials
Raw materials that can be directly traced to the production of a specific product, a component of the total manufacturing cost.
Variances
Differences between planned or expected financial outcomes and the actual results.
- Acquire knowledge on the calculation of direct materials quantity variance.
- Familiarize oneself with the calculation of direct materials price variance.
Verified Answer
RS
Learning Objectives
- Acquire knowledge on the calculation of direct materials quantity variance.
- Familiarize oneself with the calculation of direct materials price variance.
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