The following standards have been established for a raw material used in the production of product O99:

Standard quantity of the material per unit of output			2.6	pounds
Standard price of the material		$	14.50	per pound

The following data pertain to a recent month's operations:

Actual material purchased			7,600	Pounds
Actual cost of material purchased		$	110,960
Actual material used in production			7,300	Pounds
Actual output			2,800	units of product O99

Required:

a.	What is the materials price variance for the month? (Input the amount as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Materials price variance

$

(Click to select)NoneUF

b.	What is the materials quantity variance for the month? (Input the amount as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Materials quantity variance

$

(Click to select)NoneUF

c.	Prepare journal entries to record the purchase and use of the raw material during the month. (All raw materials are purchased on account.)

General journal	Debit	Credit
Record the purchase of the raw material:
(Click to select)Accounts receivableActual material used in productionAccounts payableActual materials purchasedMaterials quantity varianceWork in processMaterials price varianceRaw materials
(Click to select)Work in processAccounts payableRaw materialsMaterials price varianceMaterials quantity varianceAccounts receivableActual material used in productionActual materials purchased
(Click to select)Actual materials purchasedActual material used in productionMaterials quantity varianceAccounts receivableMaterials price varianceWork in processRaw materialsAccounts payable
Record the use of the raw material:
(Click to select)Actual materials purchasedAccounts payableMaterials quantity varianceActual material used in productionRaw materialsAccounts receivableWork in processMaterials price variance
(Click to select)Actual material used in productionMaterials quantity varianceAccounts payableMaterials price varianceWork in processAccounts receivableRaw materialsActual materials purchased
(Click to select)Materials quantity varianceAccounts receivableActual material used in productionWork in processActual materials purchasedAccounts payableMaterials price varianceRaw materials