19.

Question Content Area

Direct Materials Purchases Budget

Pasadena Candle Inc. budgeted production of 700,000 candles for the January. Wax is required to produce a candle. Assume 10 ounces of wax is required for each candle. The estimated January 1 wax inventory is 16,400 pounds. The desired January 31 wax inventory is 14,300 pounds. If candle wax costs $1.40 per pound, determine the direct materials purchases budget for January. (One pound = 16 ounces.) Round all computed answers to the nearest whole number. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Pasadena Candle Inc. Direct Materials Purchases Budget For the Month Ending January 31

Pounds of wax required for production:
CandlesEstimated beginning inventory, January 1Estimated ending inventory, January 31Unit priceCandles	Candles
Estimated beginning inventory, January 31Desired ending inventory, January 1Desired ending inventory, January 31Unit priceDesired ending inventory, January 31	Desired ending inventory, January 31
Total units available	fill in the blank 5
CandlesEstimated beginning inventory, January 1Estimated beginning inventory, January 31Unit priceEstimated beginning inventory, January 1	Estimated beginning inventory, January 1
Total pounds to be purchased	fill in the blank 8
Unit price	$fill in the blank 9
Total direct materials to be purchased in January

20.

Question Content Area

Direct Labor Variances

Bellingham Company produces a product that requires 5 standard direct labor hours per unit at a standard hourly rate of $20.00 per hour. If 5,000 units used 24,500 hours at an hourly rate of $20.80 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

a. Direct labor rate variance	$fill in the blank 1	FavorableUnfavorable
b. Direct labor time variance	$fill in the blank 3	FavorableUnfavorable
c. Direct labor cost variance

21.

Question Content Area

Standard Cost Journal Entries

Bellingham Company produced 4,500 units that require 10 standard pounds per unit at a $5.5 standard price per pound. The company actually used 44,100 pounds in production.

Journalize the entry to record the standard direct materials used in production. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableCashDirect Materials Price VarianceMaterialsWork in ProcessWork in Process	Work in Process	Work in Process
	Accounts PayableCashCost of Goods SoldDirect Materials Quantity VarianceDirect Materials Price VarianceDirect Materials Quantity Variance	Direct Materials Quantity Variance	Direct Materials Quantity Variance
	Accounts PayableCashCost of Goods SoldMaterialsWork in ProcessMaterials	Materials	Materials