Kita 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 is as follows:InputsStandard Quantityor HoursStandard Price or RateStandard CostDirect materials3.3pounds$7.50per pound$24.75Direct labor0.80hours$20.50per hour 16.40Fixed manufacturing overhead0.80hours$18.50per hour 14.80Total standard cost per unit $ 55.95During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 24,820 hours at an average cost of $21.20 per hour.Assume 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$1,100,000$49,500$0$50,355$559,900=$0$0?Labor Rate VarianceLabor Efficiency VarianceFOH Budget VarianceFOH Volume VarianceRetained Earnings1/1$0$0$0$0$1,759,755When recording the direct labor costs, the Work in Process inventory account will increase (decrease) by:
A. ($526,184)
B. ($514,960)
C. $514,960
D. $526,184
Answer: C
You might also like to view...
What can teams do to prepare for conflicts?
What will be an ideal response?
Which of the following is NOT a need according to Maslow’s hierarchy of needs?
a. Safety b. Love and belonging c. Money d. Esteem
SCENARIO-BASED QUESTIONS Revise For Visual Enhancements ? Revise the following paragraph to add appropriate visual enhancements, such as enumerations or bullets, headings, tables or graphs, and so forth. ? TO: John Henry, Personnel Director ?
FROM: Lena Rose, Vice President ? DATE: xxx ? SUBJECT: EMPLOYEE COMMUNICATION ? You will recall the recent telephone survey we conducted on over 200 employees from the past five years to determine why so many of our workers leave our firm to take jobs elsewhere. The analysis of the data gathered on employee terminations has been completed. Our investigation resulted in two findings that are particularly noteworthy. Most workers who leave our firm to work elsewhere do not leave because they believe they are poorly paid. Their primary complaint is that they did not have satisfactory working relationships with their supervisors while working for us. The need for better communication throughout our work force is clear. Accordingly, the following steps will be taken to meet this important need. All supervisors will interview their subordinates once each quarter rather than once each year, as in the past. Also, seminars in management communication skills will be provided for all supervisors and department heads to help them develop more effective communication techniques. We believe these efforts will open channels of communication among our employees and eliminate most of the frustration revealed by former workers in our recent survey. We have also designated an employee relations officer to personally deal with worker complaints of a particularly serious nature. Also, those who come up with ways to improve communication will be rewarded in the form of incentives. Finally, a company newsletter will be published monthly to provide an opportunity for employees to express their views publicly and to improve the flow of information throughout the firm. Appointments to the newsletter staff will be announced shortly. These changes will go into effect on July 1 and will be officially announced to all employees next week. We believe these initiatives will be effective in our efforts to improve communication among employees, upgrade worker morale, and reduce the firm's costly and disruptive employee turnover problems. We will need your support as well as that of other first-level officers if the desired results are to be obtained in this undertaking. Feel free to make suggestions or recommendations that you believe may be helpful. We are hopeful that these changes will be well received by employees at all levels.
An employer is required to compensate for harm caused by its employees in the course of work due to the principle of
A) vicarious liability B) joint and several liability C) workers' compensation liability D) employment equity E) insurance disclosure