Question

Journalize the following transactions for Combs Company.

(a) Purchased 6,000 units of raw materials on account for $11,500. The standard cost was $12,000.
(b) Issued 5,600 units of raw materials for production. The standard units were 5,800.

Answer 1

Answer: See explanation

Step-by-step explanation:

a. Debit: Raw material $12000

Credit: Account payable $11500

Credit: Material price variance $500

(To record material purchase)

b. Debit: Work in process 11600

Credit: Raw material 11200

Credit: Material price variance 400

(To record material issued)

Note:

Material price variance for (a)= 12000 - 11500 = 500

Work in progress = 5800 × 2 = 11600

Material price variance for (b) = 11600 - 11200 = 400