Bohon Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product contains the following information concerning direct materials:InputsStandard Quantityor HoursStandard Price or RateStandard CostDirect materials1.0pound$5.50per pound$5.50During the year, the company completed the following transactions concerning direct materials:a. Purchased 19,700 pounds of raw material at a price of $4.70 per pound.b. Used 18,500 pounds of the raw material to produce 18,400 units of work in process.The company calculated the following direct materials
variances for the year:Materials price variance$15,760FMaterials quantity variance$550UAssume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.?CashRaw MaterialsWork in ProcessFinished GoodsPP&E (net)=Materials Price VarianceMaterials Quantity Variance1/1$1,030,000$53,350$0$88,880$737,900=$0$0a.?????=??b.?????=???Labor Rate VarianceLabor Efficiency VarianceFOH Budget VarianceFOH Volume VarianceRetained Earnings1/1$0$0$0$0$1,910,130a.?????b.?????When recording the raw materials purchases in transaction (a) above, the Raw Materials inventory account will increase (decrease) by:
A. ($92,590)
B. ($108,350)
C. $108,350
D. $92,590
Answer: C
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Sea Company reports the following information regarding its production cost.Units produced 42,000unitsDirect labor$35per unitDirect materials$28per unitVariable overhead$17per unitFixed overhead$105,000in totalCompute the product cost per unit under variable costing.
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A bailment agreement can be express or implied.
Answer the following statement true (T) or false (F)
What is packet-switching?
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