Sarheen, Inc Required:
Determine:
1

Essay

Sarheen, Inc.maintains no inventories and has collected the following data on one of its products for the most recent period: $$\begin{array} { | l | l | } \hline \text { Direct material standard (4lbs. } @ \$ 1 / \mathrm { lb } \text {.) } & \$ 4 \text { per unit } \\\hline \text { Total direct materials cost variance-unfavorable } & \$ 13,750 \\\hline \text { Actual direct material used } & 125,000 \mathrm { lbs } . \\\hline \text { Actual finished units produced } & 25,000 \text { units } \\\hline\end{array}$$ Required:
Determine:
1.The direct material usage (quantity) variance.
2.The actual cost of the direct materials purchased and used during the period.(Hint: these two amounts are identical.)
3.The direct material price variance.
4.The correct summary journal entry to record direct material costs for this period's production, including associated standard cost variances.(Note: assume that any price variances are recorded at point of production.)