**Journal Entry for Purchase and Use of Direct Materials (DM) Under Standard Costing***Instructions:*Record the journal entries for the purchase and use of DM under standard costing. **Credit account titles are automatically indented when amount is entered. Do not indent manually.** If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.| **Account Titles and Explanation** | **Debit** | **Credit** ||------------------------------------|-----------|------------|| | | || | | || *(To record purchase of DM)* | | || | | || *(To record use of DM)* | | |This layout is intended to guide users in accurately recording financial transactions related to direct materials in accordance with standard costing procedures. By following the instructions, users can ensure their financial data is systematically organized and adheres to accounting standards. **Transcription for Educational Website:**---**Context:**At the end of the third quarter for Marigold Industries, there was a discussion about best practices related to carrying an inventory of its key direct material (DM), acetic acid, for making vinegar. According to established standards, 7.1 ounces of acetic acid priced at $0.30 per ounce were needed for each gallon of vinegar (128 ounces). The new production manager advocates for a just-in-time practice of buying only what is needed for production, whereas the former manager preferred keeping some inventory for emergencies. During the third quarter, 316,800 ounces of acetic acid were purchased and used to produce 44,000 gallons of vinegar, at a total purchase price of $88,704.**Task:**Determine the DM price and efficiency variances for the third quarter based on the given information.---**Results:**- **DM Price Variance:** - Variance Amount: $6,336 - Nature: Favorable - **DM Efficiency Variance:** - Variance Amount: $1,320 - Nature: Unfavorable**Additional Resources:**- eTextbook and Media- Assistance Used---**Explanation of Diagram:**The diagram in this context shows two forms where the results for "DM price variance" and "DM efficiency variance" are entered. Each form contains two elements:1. A box for the variance dollar amount.2. A dropdown to indicate if the variance is favorable or unfavorable. The responses reflect the outcome of comparing the actual costs and efficiency of using acetic acid against planned standards. **Note:** For further understanding of price and efficiency variances, consider using supplementary resources such as textbooks or online assistance.---

Record the journal entries for the purchase and use of DM under standard costing. (Credit account titles are automatically inde when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record purchase of DM) (To record use of DM) Search Debit Credit 22

Record the journal entries for the purchase and use of DM under standard costing. (Credit account titles are automatically inde when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record purchase of DM) (To record use of DM) Search Debit Credit 22

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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At the beginning of the current season on April 1, the ledger of Riverbed's Discorama showed Cash $1,800, Inventory $2,400, and Owner's Capital $4,200. The following transactions were completed during April 2022. Apr. 5 7 9 10 12 14 17 20 21 27 30 Purchased golf discs, bags, and other inventory on account from Mumford Co. $1,200, FOB shipping point, terms 2/10, n/60. Paid freight on the Mumford purchase $50. Received credit from Mumford Co. for merchandise returned $100. Sold merchandise on account for $980, terms n/30. The merchandise sold had a cost of $588. Purchased disc golf shirts and other accessories on account from Saucer Sportswear $640, terms 1/10, n/30. Paid Mumford Co. in full, less discount. Received credit from Saucer Sportswear for merchandise returned $40. Made sales on account for $700, terms n/30. The cost of the merchandise sold was $400. Paid Saucer Sportswear in full, less discount. Granted an allowance to customers for clothing that did not fit $10. Received…
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Use the following sales journal to record the transactions. All credit sales are terms of n/30. (If a box is not used in the journal leave the box empty; do not select information or enter a zero.) i (Click the icon to view the transactions.) Jun Date 2024 Invoice No. Account Debited More info Jun. 1 Jun. 8 Customer Jun. 13 Jun. 28 Sales Journal Post. Ref. Accounts Receivable DR Sales Revenue CR Sold merchandise inventory on account to Ford Junk, $1,250. Cost of goods, $960. Invoice no. 101. Page Cost of Goods Sold DR Merchandise Inventory CR Sold merchandise inventory on account to Iris Fray, $2,250. Cost of goods, $1,650. Invoice no. 102. Sold merchandise inventory on account to Jack Tremane, $400. Cost of goods, $240. Invoice no. 103. Sold merchandise inventory on account to Gail White, $810. Cost of goods, $650. Invoice no. 104. Print Done X
Blossom Company purchases various types of beach toys for sale to consumers. Listed below are the transactions for the month of June. Blossom uses a perpetual inventory system. June 1 Purchased 25 water tubes for $260 each terms n/30 FOB destination. 8 Returned 4 tubes purchased on June 1 due to defects. Received a full refund for the defective tubes. 10 Freight charges of $100 for the June 1 transaction are paid by the responsible party. 11 Made a complaint about competitive pricing. Received a $400 credit for the water tubes purchased on June 1. 15 Purchased 110 water tubes for $235 each on account, terms 2/10 n/30. 18 Made payment for the amount owing for the June 1 transaction. 20 Made payment for the amount owing for the June 15 transaction.
Wildhorse Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2025. Wildhorse had the following transactions related to notes payable Sept. 1 Sept. 30 Oct. 1 Oct. 31 Nov. 1 Nov. 30 Dec. 1 Dec. 31 Issued a $13,200 note to Pippen to purchase inventory. The 3-month note payable bears interest of 9% and is due December 1. (Wildhorse uses a perpetual inventory system) Recorded accrued interest for the Pippen note. Issued a $22,800, 9%, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1. Recorded accrued interest for the Pippen note and the Prime Bank note. Issued a $24,000 note and paid $7,600 cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note bears interest of 6% and matures in 12 months. Recorded accrued interest for the Pippen note, the Prime Bank note, and…
Journalize the entries to correct the following errors: a. A purchase of supplies for $158 on account was recorded and posted as a debit to Supplies for $513 and as a credit to Accounts Receivable for $513. (Record the entry to reverse the error first.) If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - b. A receipt of $4,068 from Fees Earned was recorded and posted as a debit to Fees Earned for $4,068 and a credit to Cash for $4,068. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select -