Question

Journalize the following transactions for Combs Company.

(a) Purchased 6,900 units of raw materials on account for $13,060. The standard cost was $13,800.
(b) Issued 6,780 units of raw materials for production.
The standard units were 6,890. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) (b)

Answer 1

No Account Titles and Explanation Debit Credit

A. Raw material inventory $13,800

Direct material price variance $740

($13,800 - $13,060)

Account payable $13,060

(To record purchase of materials)

B. Work in process inventory $13,780

6,890 * ($13,800/6,900)

Direct material quantity variance $220

($13,780 - $13,560)

Raw materials inventory $13,560

6,780 * ($13,800/6900)

(To record materials issued to production)