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Bliny Corporation Prepare material and labor journal entries

Bliny Corporation makes a product with the following standard costs for direct material and direct labor:

Direct material: 1.20 meters at $5.30 per meter $6.36
Direct labor: .40 hours at $14.00 per hour $5.60
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During the most recent month, 8,300 units were produced. The costs associated with the month's production of this product were as follows:

Material purchased: 15,000 meters at $5.10 per meter $76,500
Material used in production: 10,060 meters -
Direct labor: 3,270 hours at $14.20 per hour $46,434
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The standard cost variances for direct material and direct labor are:

Materials price variance: 15,000 meters at $0.20 per meter F $3,000 F
Materials quantity variance: 100 meters at $5.30 per meter U $530 U
Labor rate variance: 3,270 hours at $0.20 per hour U $654 U
Labor efficiency variance: 50 hours at $14 per hour F $700 F
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REQUIRED: Prepare material and labor journal entries

Solution Summary

The solution shows you how to prepare journal entries for standard costing of materials and labor, including a tip on managing variance entries. The solution is in excel to give you a template for other problems.

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