Question

Quality Cabinet Company uses a standard costing system and produced 2,130 cabinets during May. The standard cost of wood is $22 per linear foot, and the standard quantity for each cabinet is 29 linear feet. During May, the company purchased 64,370 linear feet of wood for $1,287,400, and 63,170 feet were used in production. The company purchases all materials on account.

Material Price Variance:128,740 F

Material quantity variance: 30,800 U

record a entry for material purchased

record a entry for material used in production