Question

Standard Cost Journal Entries Bellingham Company produced 15,000 units that require 2.5 standard pounds per unit at a $3.75 standard price per pound. The company actually used 36,000 pounds in production. Journalize the entry to record the standard direct materials used in production. For a compound transaction, if an amount box does not require an entry, leave it blank.

Answer 1

Answer:

Account Title and Explanation                    Debit             Credit

Work In Progress                                         $140,625

(15,000 Units * 2.5 * $ 3.75)

Direct Materials Quantity Variance            $5,625

($140,625- $ 135,000)

Materials                                                                           $135,000

(36,000 * $ 3.75)