Genesis Enterprises produces one productMX4. The following information relating to raw materials is available for the month
Question:
Genesis Enterprises produces one product—MX4. The following information relating to raw materials
is available for the month of March:
Beginning direct materials inventory . . . . . . . . . . . . . . . . . . . . 1,500 pounds at $3.10 per pound
Purchases made during the month . . . . . . . . . . . . . . . . . . . . . 11,000 pounds at $3.10 per pound
Direct materials placed in production . . . . . . . . . . . . . . . . . . .11,750 pounds
The standard materials usage for one unit of MX4 is 2 pounds with a standard price per pound of $3. Genesis produced 6,000 units of Product MX4 during the month.
1. Compute the materials price and quantity variances for Genesis assuming the materials price variance is computed at the time of purchase.
2. Provide the journal entries required to record:
a. The purchase of direct materials and the materials price variance.
b. Placing the direct materials in production and the materials quantity variance.
Step by Step Answer:
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain