Lakatos 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 materials3.7kilos$9.00per kilo$33.30During the year, the company completed the following transactions concerning direct materials:a.Purchased 151,800 kilos of raw material at a price of $9.70 per kilo.b.Used 140,870 kilos of the raw material to produce 38,100 units of work in process.The company calculated the following direct materials
variances for the year:Materials price variance$106,260UMaterials quantity variance$900FAssume 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$1,130,000$59,940$0$81,510$432,900=$0$0a.?????=??b.?????=???Labor Rate VarianceLabor Efficiency VarianceFOH Budget VarianceFOH Volume VarianceRetained Earnings1/1$0$0$0$0$1,704,350a.?????b.?????When the raw materials used in production are recorded in transaction (b) above, which of the following entries will be made?
A. ($900) in the Materials Quantity Variance column
B. $900 in the Materials Price Variance column
C. $900 in the Materials Quantity Variance column
D. ($900) in the Materials Price Variance column
Answer: C
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Which of the following is a true statement regarding the pension liability and pension expense recognition requirements of SFAS No. 87?
a. SFAS No. 87 presumes an explicit contract in calculating accrued pension expense. b. SFAS No. 87 uses an explicit contract view in requiring the recognition of a minimum pension liability. c. SFAS No. 87 may overestimate the pension liability by including future salary projections in the liability computation. d. SFAS No. 87 does not include future salary projections in the pension expense calculation.
A small chain of supermarkets in the western United States sells only manufacturers' brands. Which of the following is one of the arguments you could have used to dissuade the supermarket chain owner from selling only manufacturers' brands?
A. A well-known manufacturers' brand will not enhance the chain's image. B. Manufacturers rarely spend money advertising the brand name to consumers. C. Manufacturers typically offer a lower gross margin than could be earned on private label brands. D. Manufacturers force the chain to carry a large in-store inventory. E. Relying on the manufacturer or wholesaler to deliver a national brand quickly is optimistic at best.
Servitudes are:
a. limitations or requirements about the use of property in general b. taxes on services performed on a property c. taxes on income gained from a property d. limitations on how much untaxed income can be made from a property e. none of the other choices are correct
Which of the following is NOT a measure of reliability?
a.Test–retest reliability b.Multiple-forms reliability c.Internal consistency reliability d.Interrater reliability