Giovanni Company produced 3,500 units that require four standard gallons per unit at $34.00 standard price per gallon

Giovanni Company produced 3,500 units that require four standard gallons per unit at $34.00 standard price per gallon. The company actually used 14,400 gallons in production. Journalize the entry to record the standard direct materials used in production.

Answer:

Work in Process (14,000* gal. × $34.00) 476,000  

Direct Materials Quantity Variance** 13,600  

Materials (14,400 gal. × $34.00)  489,600 

* 3,500 units × 4 standard gal. per unit 

** [(14,400 gal. – 14,000 gal.) × $34.00]