50.1K

Verified Solution

Link Copied!

During the week, the Carver's Restaurant Group's French fry manufacturing facility purchased 10,100 pounds of potatoes at a price of $ 1.09 per pound. The standard price per pound is $1.04.

During the week,9,150 pounds of potatoes were used. The standard quantity of potatoes that should have been used for the actual volume of output was 9,100

pounds.

Requirements

1. Record the following transactions using a standard cost accounting system:

a. The purchase of potatoes

b. The use of potatoes

2. Are the variances favorable or unfavorable? Explain.

Requirement 1a. Let's record the journal entry for the purchase of potatoes. (Round all amounts to the nearest dollar. Record debits first, then credits. Explanations are not required.)

	Save Accounting Table...			+
	Copy to Clipboard...			+

Journal Entry
Date		Accounts	Debit	Credit

Requirement 1b. Let's record the journal entry for the use of the potatoes. (Round all amounts to the nearest dollar. Record debits first, then credits. Explanations are not required.)

	Save Accounting Table...			+
	Copy to Clipboard...			+

Journal Entry
Date		Accounts	Debit	Credit

Requirement 2. Are the variances favorable or unfavorable? Explain.

Both the direct materials price variance and the direct materials quantity variance are favorable unfavorable

We can tell this because the variance accounts were

credited debited Also, we can see that Carver's paid less more per pound than the standard cost. They also used

fewer more pounds of potatoes than the standard allowed for the actual production volume.

Choose from any list or enter any number in the input fields and then continue to the next question

Answer & Explanation Solved by verified expert

See Answer