Refer to Exercise 24-8. BTS Company records standard costs in its accounts and its material variances in
Question:
(1) Show the journal entry that both charges the direct materials costs to the Goods in Process Inventory account and records the materials variances in their proper accounts.
(2) Assume that BTS’s material variances are the only variances accumulated in the accounting period and that they are immaterial. Prepare the adjusting journal entry to close the variance accounts at period-end.
(3) Identify the variance that should be investigated according to the management by exception concept. Explain.
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1 Goods in Process Inventory 672000 Direct Materials Price Variance 8800 ...View the full answer
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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