Chapter 7, End of Chapter, Problem for Self-Study, Exercise 01

A journal entry is the primary entry that records the financial transactions related to a business. 

• In journal entry (a), materials control is debited by  $75,000,  direct materials price variance is debited by  $7,500 and accounts payable control is credited by $82,500 to record the price variance of direct material.
• In journal entry (b), work-in-process control is debited by  $60,000,  direct materials efficiency variance is debited by $6,000 and materials control is credited by $66,000 to record the efficiency variance of direct material.
• In journal entry (c), work-in-process control is debited by  $60,000, direct manufacturing labor price variance is debited by $1,300, direct manufacturing labor efficiency variance is debited by  $5,000, and wages payable control is credited by $66,300 to record the price and efficiency variance of direct manufacturing labor.