Information on Bowgie Chemicals direct materials costs follows: Actual quantities of direct materials used . . .

Question:

Information on Bowgie Chemicals direct materials costs follows:

Actual quantities of direct materials used . . . . . . . 30,000

Actual costs of direct materials used . . . . . . . . . . $131,400

Standard price per unit of direct materials . . . . . . $4.20

Flexible budget for direct materials . . . . . . . . . . . . $119,700

Bowgie Chemicals has no materials inventories.

Required

a. Prepare a short report for management showing Bowgie Chemicals's direct materials price and efficiency variances.

b. (Appendix) Prepare the journal entries to record the purchase and use of the direct materials using standard costing.

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Related Book For  book-img-for-question

Fundamentals of Cost Accounting

ISBN: 978-1259565403

5th edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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