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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The following is a list of balance sheet accounts (in random order) and balances for Premium Office Supply Company. They have been updated as of December 31, Year 1.
Required:Prepare a classified balance sheet for Premium Office Supply Company at December 31, Year 1.
What will be an ideal response?
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Indicate whether the statement is true or false
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A. Expected value of perfect information B. Expected regret C. Expected loss D. Expected value
When every possible sample with the same number of observations is equally likely to be chosen, the result is called a:
A. simple random sample. B. stratified random sample. C. cluster sample. D. biased sample.