During April, a small roofing company purchased 500 bundles of a certain type of shingle at a price of $20 per bundle, $5 more than the standard price.The standard quantity of this type of shingle is 550 bundles. What is the journal entry to record the issuance and usage of materials assuming that the roofing company purchased and used 500 bundles?

Question

Quizplus · Accepted Answer

Standard price per bundle = Actual price - $5 = $20 - $5 = $15
Work in process = Standard quantity × Standard price = 550 × $15 = $8,250
Materials usage variance = (Actual quantity - Standard quantity) × Standard price
= (500 - 550) × $15 = $750 F
Materials = Actual quantity × Standard price = 500 × $15 = $7,500

During April, a Small Roofing Company Purchased 500 Bundles of a Certain