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irakobra [83]
3 years ago
15

Blueberry Baking Company produced 5,500 cakes that require 3 standard pounds per unit at a $3 standard price per pound. The comp

any actually used 16,650 pounds in production. Journalize the entry to record the standard direct materials used in production.
Business
1 answer:
jekas [21]3 years ago
3 0

Answer:

Dr. Work in process                  $49,500

Dr. Material Quantity Variance $4,500

Cr. Raw material Inventory        $49,500

Explanation:

First we need to calculate the Material usage variance

Standard Material = 5,500 cakes x 3 pounds = 16,500 pounds

Standard cost of Standard Material = 16,500 pounds x $3 = $49,500

Actual usage at standard cost = 16,650 pounds x $3 = $49,950

Material usage Variance = $49,950 - $49,500 = $450 unfavorable

When the actual cost incurred is more than the standard cost the variance is unfavorable.

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