Robin Company Records Standard Costs and Variances in Its Accounts

question 42

Essay

Robin Company records standard costs and variances in its accounts. Robin Company purchased and used 500 pounds of direct materials to produce a product with a 520-pound standard direct materials requirement. The standard materials price is $1.90 per pound. The actual materials price was $2.00 per pound.​
Journalize the entries to record (a) the purchase of the materials and (b) the materials used in production.

---

Definitions:

Proportional Consolidation Method

An accounting method used when a parent company jointly controls a business entity, consolidating only their proportionate share of the entities' assets, liabilities, and operations.

Consistent

refers to the uniform application of accounting policies and procedures in financial reporting across periods.

Entity Concept

An accounting principle that treats a company as a separate legal and accounting entity distinct from its owners or other companies.

Full Consolidation

An accounting method where the parent company integrates the financial statements of all its subsidiaries, regardless of the percentage of ownership, into one consolidated set of financial statements.