Accounting help?

Question

Journalize the following transactions for McBee Manufacturing.
(a) Purchased 6,000 units of raw materials on account for $11,600. The standard cost was $12,000.
(b) Issued $5,600 units of raw materials for production. The standard units were $6,000.

(a) Raw Materials Inventory 12000
Materials Price Variance 400
Accounts Payable 11600

(b) Work in Process Inventory
Materials Quantity Variance
Raw Materials Inventory

For part B I put:
WIP inventory= 6000
Mat. Q. Variance= 400
Raw Mat. Inv= 5600.
They were wrong. Anyone help me out?

Not sure what you mean....

Answer 1

For part B:

WIP inventory = 0. "Work in process" is something that has started becoming a finished product. All McBee has done so far is issue the materials.

Materials Quantity Variance = Normally, you would pay $12,000 for 6000 units, or $2 a piece. In this case, you got 6000 for $11,600 or $1.93 a piece. So, your variance is $0.07 per unit, or $420.

Raw Materials Inventory = Difference between what you have and what you gave away ---> 6000 units and you issued 5600 units. 6000 - 5600 = 400. (Not zero)

Regards,

Mysstere