Robin Company Purchased and Used 500 Pounds of Direct Materials

Essay

Robin Company purchased and used 500 pounds of direct materials to produce a product with a 520 pound standard direct materials requirement. The standard materials price is $1.90 per pound. The actual materials price was $2.00 per pound.
Prepare the journal entries to record 1) the purchase of the materials and 2) the material entering production.
Materials (500 × $1.90)950
Direct Materials Price Variance (500 × $0.10)50
Accounts Payable (500 × $2.00)1,000