Pentyl Company manufactures t-shirts. During the year, it manufactured 100,000 t-shirts, using 3 hours of direct labor at a rate of $7 per hour. The materials and labor standards for manufacturing the t-shirts are as follows: Direct materials (5 yards of fabric @ $4 per yard)$20Direct labor (2 hours @ $8.00 per hour)16It took Pentyl 600,000 yards at $3.50 per yard to make the 100,000 t-shirts.What is the entry to record the issuance and usage of materials? a.debit Work in Process, 6,500,000debit Materials Usage Variance, 250,000credit Materials, 5,400,000 b.debit Work in Process, 3,200,000credit Materials Usage Variance, 430,000credit Materials, 3,560,000 c.debit Work in Process, 2,000,000debit Materials Usage Variance, 400,000credit Materials, 2,400,000 d.debit Work in Process, 8,100,000debit Materials Usage Variance, 400,000credit Materials, 1,500,000

Work in process is $ 2000000 Materials Usage variance is $ 400000

Answered: Pentyl Company manufactures t-shirts.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pentyl Company manufactures t-shirts. During the year, it manufactured 100,000 t-shirts, using 3 hours of direct labor at a rate of $7 per hour. The materials and labor standards for manufacturing the t-shirts are as follows:

Direct materials (5 yards of fabric @ $4 per yard)	$20
Direct labor (2 hours @ $8.00 per hour)	16

It took Pentyl 600,000 yards at $3.50 per yard to make the 100,000 t-shirts.

What is the entry to record the issuance and usage of materials?

	a.	debit Work in Process, 6,500,000 debit Materials Usage Variance, 250,000 credit Materials, 5,400,000
	b.	debit Work in Process, 3,200,000 credit Materials Usage Variance, 430,000 credit Materials, 3,560,000
	c.	debit Work in Process, 2,000,000 debit Materials Usage Variance, 400,000 credit Materials, 2,400,000
	d.	debit Work in Process, 8,100,000 debit Materials Usage Variance, 400,000 credit Materials, 1,500,000

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