Question

Concord Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows. 1. Purchased 17,300 units of raw materials on account at a cost of $3.30 per unit. Standard cost was $3.00 per unit. 2. Issued 17,300 units of raw materials for jobs that required 16,890 standard units of raw materials. 3. Incurred 16,000 actual hours of direct labor at an actual rate of $4.00 per hour. The standard rate is $4.50 per hour. (Credit Factory Wages Payable.) 4. Performed 16,000 hours of direct labor on jobs when standard hours were 16,160. 5. Applied overhead to jobs at the rate of 100% of direct labor cost for standard hours allowed. Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit

Answer 1

No	Account Titles	Debit	Credit
1	Raw Materials Inventory	$51,900
	Materials Price Variance	$5,190		[17,300 x ($3.30 - $3.00)]
	Accounts Payable		$57,090
2	Work in Process Inventory	$50,670
	Materials Quantity Variance	$1,230		[$3.00 x (17,300 - 16,890)]
	Raw Materials Inventory		$51,900
3	Factory Labor	$72,000
	Labor Price Variance		$8,000	[16,000 x ($4.00 - $4.50)]
	Factory Wages Payable		$64,000
4	Work in Process Inventory	$72,720
	Labor Quantity Variance		$720	[$4.50 x (16,000 - 16,160)]
	Factory Labor		$72,000
5	Work in Process Inventory	$123,390
	Manufacturing Overhead		$123,390