Hart Company made 6,600 bookshelves using 88,600 board feet of wood costing $682,220. The company’s direct materials standards for one bookshelf are 15 board feet of wood at $7.60 per board foot.

Exercise 23-9A Materials variances recorded and closed LO P4

Hart Company made 6,600 bookshelves using 88,600 board feet of wood costing $682,220. The company’s direct materials standards for one bookshelf are 15 board feet of wood at $7.60 per board foot. Hart Company records standard costs in its accounts and its material variances in separate accounts when it assigns materials costs to the Goods in Process Inventory account.

(1)

Prepare the journal entry that both charges the direct materials costs to the Goods in Process Inventory account and records the materials variances in their proper accounts. (2) Assume that Hart’s material variances are the only variances accumulated in the accounting period and that they are immaterial. Prepare the adjusting journal entry to close the variance accounts at period-end.