The Blaof Company had budgeted 6 pounds of direct material per unit of output at $5...

 

Transcribed Image Text:

The Blaof Company had budgeted 6 pounds of direct material per unit of output at $5 per pound of direct material and had budgeted sales and production of 160 units of output for the quarter. For the quarter, the company actually purchased 900 pounds of material for $5,175 and used 750 pounds in producing 150 units of output. Suppose the firm isolates all variances at the earliest possible time. Give the (summary) journal entry for the issuance of material into production. A. B. Calculate the material (purchase) price variance and indicate if it is favorable or unfavorable. The Blaof Company had budgeted 6 pounds of direct material per unit of output at $5 per pound of direct material and had budgeted sales and production of 160 units of output for the quarter. For the quarter, the company actually purchased 900 pounds of material for $5,175 and used 750 pounds in producing 150 units of output. Suppose the firm isolates all variances at the earliest possible time. Give the (summary) journal entry for the issuance of material into production. A. B. Calculate the material (purchase) price variance and indicate if it is favorable or unfavorable.

Answer rating: 100% (QA)

A The summary journal entry for the issuance of material into production would beDebit ... View the full answer