Journalize the Entries to Record the Following Transactions

question 90

Essay

Journalize the entries to record the following transactions:
1.Mar. 10: 500 units of raw materials were purchased on account at $4.00 per unit.
2.Mar. 15: 250 units of raw materials were requisitioned at $4.50 per unit for production, Job 872.
3.Mar. 25: 215 units of raw materials were requisitioned at $5.00 per unit for production, Job 879.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost, multiplied by the quantity of materials used.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that do not vary with production volume, such as rent and salaries of supervisors.

Direct Labor Variances

The difference between the actual labor costs incurred and the standard labor costs for the actual production level.

Direct Labor

Refers to the wages paid to workers who are directly involved in the production of goods or services.