Recording direct materials variances

Recording direct materials variances - 63,000 Record...

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Recording direct materials variances . The direct materials price variance is recorded when the  direct materials are purchased. The materials are recorded using actual quantity and standard cost.  A separate account is used to track each variance.  General Journal Date Account and Title Description Ref. Debit Credit 20X1 Oct. 16 Raw Materials Inventory 66,000 Direct Materials Price Variance 3,000 Accounts Payable
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Unformatted text preview: 63,000 Record Materials Purchased The materials quantity variance is recorded when direct materials are requested by production. Direct materials are taken out of raw materials inventory at the same cost they were put in (actual materials quantity at standard price), and work-in-process inventory is increased based on the units produced at standard cost...
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This note was uploaded on 11/16/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

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