Use the data in Exhibit 14.5. On October 7, Schmidt Machinery Company purchased 720 pounds of PVC at $41 per pound. On October 9, Schmidt’s production department used 720 pounds of PVC for the 780 units of XV–1 it manufactured.

EXHIBIT 14.5

Standard Cost Sheet

Required

Make the necessary journal entries to record the purchase and usage of PVC duringOctober.

Transcribed Image Text:

Oct. 7 Pounds purchased Actual cost per pound 720 $41 Total actual $29,520 cost Pounds purchased Standard cost per pound Total standard cost 720 40 $28,800 $720 U Materials purchase price variance Oct. 9 Actual materials requested 720 Standard materials allowed 780 Difference (lbs.) Standard cost per lb. Materials usage variance 60 $40 $2,400 F