The managers at Tamarisk Company were excited to learn that the purchasing department got a bulk...

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The managers at Tamarisk Company were excited to learn that the purchasing department got a bulk shipment of a key raw mat for $7,300, a $600 savings from their plan. Later that month, however, the production department had used nearly all the mater had been purchased, noting a $1,200 higher cost of material used than its flexible budget DM cost of $7,000. Record Tamarisk's journal entry for the purchase of DM using standard costing, and then record the company's journal entry for of DM using standard costing. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation DM Inventory DM Price Variance Accounts Payable (To record purchase of DM) WIP Inventory Direct Materials Usage Variance DM Inventory Debit 7900 7000 1200 Credit 600 7300 8200 The managers at Tamarisk Company were excited to learn that the purchasing department got a bulk shipment of a key raw mat for $7,300, a $600 savings from their plan. Later that month, however, the production department had used nearly all the mater had been purchased, noting a $1,200 higher cost of material used than its flexible budget DM cost of $7,000. Record Tamarisk's journal entry for the purchase of DM using standard costing, and then record the company's journal entry for of DM using standard costing. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation DM Inventory DM Price Variance Accounts Payable (To record purchase of DM) WIP Inventory Direct Materials Usage Variance DM Inventory Debit 7900 7000 1200 Credit 600 7300 8200

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Journal Entry for Purchase of Direct Materials using Standard Costing Date Account Debit Cr... View the full answer