a. Assume Jacobs purchased 69,000 pounds of rawmaterials on account at $2.20 per pound and used67,000 pounds in May's production, prepare a journalentry to record the purchase of raw materials and alseparate journal entry to record the use of rawmaterials in production. Record these entries usingstandard costs and include the appropriate materialsvariances.General JournalDescriptionMaterials price varianceTo record the purchase of direct materialsMaterials inventoryTo record the use of direct materialsDebit Variances and Journal EntriesJacobs Company manufactures a single product anduses a standard costing system. The nature of itsproduct dictates that it be sold in the period it isproduced. Thus, no ending work in process or finishedgoods inventories remain at the end of the period.However, raw materials can be stored and arepurchased in bulk when prices are favorable. Per-unitstandard product costs are material, $8 (4 pounds);labor, $6 (0.5 hour); and variable overhead, $4 (based ondirect labor hours). Budgeted fixed overhead is $54,000.Jacobs accounts for all inventories and cost of goodssold at standard cost and records each variance in aseparate account. The following data relate to Maywhen 17,700 finished units were produced.a. Assume Jacobs purchased 69,000 pounds of rawmaterials on account at $2.20 per pound and used67,000 pounds in May's production, prepare a journalentry to record the purchase of raw materials and aseparate journal entry to record the use of rawmaterials in production. Record these entries usingstandard costs and include the appropriate materialsvariances.

Name: a. Assume Jacobs purchased 69,000 pounds of rawmaterials on account a
Uploaded: 2024-03-20T06:32:49.000Z
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Description: a. Assume Jacobs purchased 69,000 pounds of rawmaterials on account at $2.20 per pound and used67,000 pounds in May's production, prepare a journalentry to record the purchase of raw materials and alseparate journal entry to record the use of rawmat