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| Bliny Corporation makes a product with the following standard costs for direct material and direct labor: |
| Direct material: 2.00 meters at $3.30 per meter | $ | 6.60 |
| Direct labor: 0.60 hours at $13.00 per hour | $ | 7.80 |
| During the most recent month, 5,700 units were produced. The costs associated with the month’s production of this product were as follows: |
| Material purchased: 12,700 meters at $3.20 per meter | $ | 40,640 |
| Material used in production: 11,900 meters | – | |
| Direct labor: 3,400 hours at $13.15 per hour | $ | 44,710 |
| The standard cost variances for direct material and direct labor are: |
| Materials price variance: 12,700 meters at $0.10 per meter F | $ | 1,270 | F |
| Materials quantity variance: 500 meters at $3.30 per meter U | $ | 1,650 | U |
| Labor rate variance: 3,400 hours at $0.15 per hour U | $ | 510 | U |
| Labor efficiency variance: 20 hours at $13.00 per hour F | $ | 260 | F |
| Required: | |
| 1. | Prepare the journal entry to record the purchase of materials on account for the month. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) |
| 2. | Prepare the journal entry to record the use of materials for the month. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) |
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| 3. | Prepare the journal entry to record the incurrence of direct labor cost for the month. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) |
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