The following direct materials variance analysis was performed for Moore. Requirements 1. Record Moore's direct materials journal

Question:

The following direct materials variance analysis was performed for Moore.

SC X AQ $0.40 per pound AC X AQ $0.70 per pound SC X SQ $0.40 per pound 7,900 pounds 7,900 pounds 7,200 pounds $3,160 $2

Requirements
1. Record Moore's direct materials journal entries. Assume purchases were made on account.
2. Explain what management will do with this variance information?

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Horngrens Accounting

ISBN: 978-0134674681

12th edition

Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura

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Question Posted: Feb 12, 2018 10:12 AM

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The following direct materials variance analysis was performed for Moore. Requirements 1. Record Moore's direct materials journal

Question:

SC X AQ $0.40 per pound AC X AQ $0.70 per pound SC X SQ $0.40 per pound 7,900 pounds 7,900 pounds 7,200 pounds $3,160 $2,880 $5,530 Efficiency Variance $280 U Cost Variance $2,370 U

Step by Step Answer:

Requirement 1 Date Accounts and Explanation Debit Credit Raw Materials Inventory 3160 Direct Materials Cost Variance 2370 Accounts Payable 5530 Purcha...View the full answer

Horngrens Accounting

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