Ladue Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. The standards for direct materials for the company's only product specify 3.6 kilos per unit at $7.00 per kilo. During the year, the company purchased 67,600 kilos of raw material at a price of $6.40 per kilo and used 60,220 kilos of the raw material to produce 16,700 units of work in process.Assume that all transactions are recorded on a worksheet as shown in the text. On the left-hand side of the equals sign in the worksheet are columns for Cash, Raw Materials, Work in Process, Finished Goods, and PP&E (net). All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained
Earnings.When recording the raw materials used in production, the Work in Process inventory account will increase (decrease) by:
A. $420,840
B. ($421,540)
C. $421,540
D. ($420,840)
Answer: A
You might also like to view...
Sage Hospitals, a nonprofit organization, provides healthcare to the people in the Midwest. Management at Sage is involved in the ________ market
A) government B) consumer C) wholesale D) institutional E) resell
____ is synchronous, overlapping communication
A) Geolocating B) Multicommunicating C) Instant messaging D) Posting to Facebook E) Handing out printed flyers
The authority of the federal courts to hear trials is known as original jurisdiction
a. True b. False
The ______________ annual rate is the annual rate of interest actually paid or earned. This reflects the effects of compounding frequency
A) effective B) nominal C) discounted D) continuous