The standard cost of Product 245 manufactured by Essex Company includes 2 pounds of direct materials at $5.00 per pound. During September, 40,000 pounds of direct materials are purchased at a cost of $4.80 per pound, and all of the direct materials are used to produce 19,000 units of Product 245.
Instructions
(a) Compute the materials price and quantity variances.
(b) Journalize the purchase of the materials and the issuance of the materials, assuming a standard cost system is used.

Question

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The Answer of The standard cost of Product 245 manufactured by Essex Company includes 2 pounds of direct materials at $5.00 per pound. During September, 40,000 pounds of direct materials are purchased at a cost of $4.80 per pound, and all of the direct materials are used to produce 19,000 units of Product 245.
Instructions
(a) Compute the materials price and quantity variances.
(b) Journalize the purchase of the materials and the issuance of the materials, assuming a standard cost system is used.

The Standard Cost of Product 245 Manufactured by Essex Company