The Following Standards Have Been Established for a Raw Material

question 156

Essay

The following standards have been established for a raw material used in the production of product U98:
$\begin{array}{llcc} \text {Standard quantity of the material per unit of output } & \text { 2.6pounds } \\ \text { Standard price of the material} & \text { \$ 14.50 Per pound} \\\end{array}$


The following data pertain to a recent month's operations:
$$\begin{array} { ll } \text { Actual material purchased } & 7,606 \text { Pounds } \\\text { Actual cost of material purchased } & \$ 110,960\\\text { Actual material used in production } & 7,300 \mathrm { Pounds } \\\text { Actual output } & 2,800 \text { units of product U98 }\end{array}$$
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
c. Prepare journal entries to record the purchase and use of the raw material during the month. (All raw materials are purchased on account.)

---

Definitions:

Unified National Fine

A standard for threading that specifies a fine thread pitch, commonly used in bolts, screws, and nuts in North American engineering applications.

M

In machining and engineering, "M" often refers to a metric specification or the designation for milling operations in G-code programming.

Square Bar

A type of metal or wooden bar with a square cross-section.

Welding Symbol

Symbols used on blueprints and technical drawings to indicate the type, size, and length of welds used in the fabrication of metal parts.