s10-16 - Student Mukhtar Lakha Instructor Robert Nicholson...

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Student: Mukhtar Lakha Instructor: Robert Nicholson Date: 11/20/11 Course: Acct2302-7502-Robert Nicholson-Fall 2011 Book: Braun: Managerial Accounting, 2e Time: 8:11 PM S10-16 (similar to) During the week, Eddie's french fry manufacturing facility purchased 10,400 pounds of potatoes at a price of $1.13 per pound. The standard price per pound is $1.03. During the week, 9,960 pounds of potatoes were used. The standard quantity of potatoes that should have been used for the actual volume of output was 9,600 pounds. Record the following transactions using a standard cost accounting system: 1. The purchase of potatoes 2. The use of potatoes Are the variances favorable or unfavorable? Explain. 1. Let's record the journal entry for the purchase of potatoes. (Round all amounts to the nearest dollar. Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit Raw Material Inventory 10,712 Direct Materials Price Variance 1,040 Accounts Payable 11,752
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This note was uploaded on 01/13/2012 for the course ACCOUNTING 2302 taught by Professor Harris during the Fall '11 term at Dallas Colleges.

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s10-16 - Student Mukhtar Lakha Instructor Robert Nicholson...

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