The Following Information Comes from the Records of Barney Co

question 27

Essay

The following information comes from the records of Barney Co.for the current period.
a.Compute the direct materials price and quantity variances,direct labor rate and efficiency variances and state whether the variance is favorable or unfavorable.
b.Prepare the journal entries to charge direct materials and direct labor costs to work in process and the materials and labor variances to their proper accounts.

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Definitions:

Departmental Income Statements

are financial statements that report the income, expenses, and net income of individual departments within a company.

Departmental Balance Sheets

Departmental Balance Sheets are financial statements that show the assets, liabilities, and equity of specific departments within a company, providing insight into their financial position.

Computer Supplies

Various items like paper, toners, disks, and other materials used with computers in an office or home setting.

Office Supplies

denotes consumable items like pens, paper, and printer ink that are used in an office setting for daily operations.