Reference no: EM132804409

Question - Templet construction uses a standard cost system for all manufacturing transactions. For the month of April the following activities have taken place:

Direct manufacturing materials purchased $270,000

Direct manufacturing materials used $360,000

Direct materials rate variance $3,000 unfavourable

Direct materials efficiency variance $4,000 favourable

Direct manufacturing labour rate variance $5,000 favourable

Direct manufacturing labour efficiency variance $7,000 favourable

Direct manufacturing labour payable $280,000

Required - Record the necessary journal entries to:

1. Record the materials purchases assuming that materials rate variances are recorded at the time of purchase.

2. Record the materials placed into production.

3. Record the direct labour used in production.