Question

In: Accounting

Nighthawk, Inc. produced 4,000 units that require eight standard pounds per unit at $3 per pound....

Nighthawk, Inc. produced 4,000 units that require eight standard pounds per unit at $3 per pound. The company actually used 35,000 pounds in production. The journal entry to record the standard direct materials used in production would include a

a.debit to Direct Materials Quantity Variance for $9,000.

b.debit to Materials for $105,000.

c.credit to Work in Process for $96,000.

d.credit to Direct Materials Quantity Variance for $9,000.

Solutions

Expert Solution

Correct Answer (A) Debit to Direct Material Quantity Variance for $9000.

Explanation

The following Journal entry will be recorded for avove transaction

Work in Progress (32000 pounds X 3)                                                      Dr           $ 96000.00

Direct Material Quantity Variance (3000 pounds X 3) Dr           $ 9000.00            

              Material (35000 pounds X 3)                                                                                                                          105000.00                 

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

1. Dvorak Company produced 2,800 units that require 11 standard pounds per unit at $3.5 standard...
1. Dvorak Company produced 2,800 units that require 11 standard pounds per unit at $3.5 standard price per pound. The company actually used 29,600 pounds in production. Journalize the entry to record the standard direct materials used in production. For a compound transaction, if an amount box does not require an entry, leave it blank. Work in Process Direct Materials Quantity Variance Materials 2. The following data relate to the direct materials cost for the production of 2,400 automobile tires:...
Sheffield has a standard of 1.5 pounds of materials per unit, at $6 per pound. In...
Sheffield has a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 2000 units, Sheffield used 3200 pounds of materials at a total cost of $18720. Sheffield's total variance is $900 F. $1200 U. $480 U. $720 U.
Gifford Corp. budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The...
Gifford Corp. budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units. Find the amounts for the direct materials variance, direct marerials quantity variance, and the total direct materials variance along with whether or not they're favorable or unfavorable. Show all your work. If possible, give reasons as to why the variances came out the way they did.
10)Oxford Co. has a materials standard of 2.1 pounds per unit of output. Each pound has a standard price of $14 per pound.
  10)Oxford Co. has a materials standard of 2.1 pounds per unit of output. Each pound has a standard price of $14 per pound. During February, Oxford Co. paid $57,300 for 4,810 pounds, which were used to produce 2,400 units. What is the direct materials quantity variance? A) $3,220 favorable B)$8,780 favorable C)$9,540 unfavorable D)$1,080 unfavorable 23) Avocado Company has an operating income of $123,900 on revenues of $1,066,000. Average invested assets are $590,000, and Avocado Company has an 13% cost...
Direct Materials Variances Bellingham Company produces a product that requires eight standard pounds per unit. The...
Direct Materials Variances Bellingham Company produces a product that requires eight standard pounds per unit. The standard price is $11.5 per pound. If 5,500 units used 42,200 pounds, which were purchased at $11.96 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ Favorable OR Unfavorable b....
Direct Materials Variances Bellingham Company produces a product that requires eight standard pounds per unit. The...
Direct Materials Variances Bellingham Company produces a product that requires eight standard pounds per unit. The standard price is $6.5 per pound. If 5,800 units used 48,300 pounds, which were purchased at $6.37 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ b. Direct materials quantity...
Materials: Standard Qty. Standard Cost     Oats 525 pounds $1.25 per pound     Wheat 450 pounds $1.15 per...
Materials: Standard Qty. Standard Cost     Oats 525 pounds $1.25 per pound     Wheat 450 pounds $1.15 per pound     Barley   85 pounds $1.45 per pound     Malt   65 pounds $2.15 per pound     Honey 25 quarts $1.20 per quart       Water 25 gallons $0.45 per gallon   Time:     Miller 4 1/2 hours $22.75 per hour       Loader 1 1/2 hours $11.50 per hour   Overhead is applied at $5.75 per pound completed. The recipe produced 1,025 pounds of cereal mix. If required, round your answers to the nearest...
The Assembly Department produced 4,000 units of product during March. Each unit required 1.5 standard direct...
The Assembly Department produced 4,000 units of product during March. Each unit required 1.5 standard direct labor hours. There were 6,400 actual hours used in the Assembly Department during March at an actual rate of $14.5 per hour. The standard direct labor rate is $15.5 per hour. Assuming direct labor for a month is paid on the fifth day of the following month, journalize the direct labor in the Assembly Department on March 31. For a compound transaction, if an...
Tucker Company produced 7,000 units of product that required 3.2 standard hours per unit. The standard...
Tucker Company produced 7,000 units of product that required 3.2 standard hours per unit. The standard variable overhead cost per unit is $6.40 per hour. The actual variable factory overhead was $140,490. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number.
Units Produced 131000 Standard direct labor hours per unit .20 Standard variable OH rate per dierect...
Units Produced 131000 Standard direct labor hours per unit .20 Standard variable OH rate per dierect labor hour 3.4 actual variable overhead costs 8670 Actaul hours worked 26350 1. Calculate the total variable overhead variance 2. What if the actual production was 129600 units? How would that affect the total variable overhead variance? the total variable overhead variance 2. What if actual production has been  
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT