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)?1/1$1,130,000$59,940$0$81,510$432,900=a.?????=b.?????=?Materials Price VarianceMaterials Quantity VarianceLabor Rate VarianceLabor Efficiency VarianceFOH Budget VarianceFOH Volume VarianceRetained Earnings1/1$0$0$0$0$0$0$1,704,350a.???????b.???????When recording the raw materials used in production in transaction (b) above, the Work in Process inventory account will increase (decrease) by:
A. $1,268,730
B. ($1,268,730)
C. $1,267,830
D. ($1,267,830)
Answer: A
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a. Increase assets and equity by $4,750 b. Decrease assets and equity by $250 c. Increase assets by $5,000 d. Increase equity by $5,000
The means used by an offeror to communicate the offer is:
A. the only authorized means of communication for accepting. B. the impliedly authorized means for accepting regardless of circumstances. C. the impliedly authorized means for accepting unless the circumstances indicate otherwise. D. always the offeror's particular trade usage in communication, as it impliedly authorizes a given means of acceptance.
In order to create a general partnership, an express agreement is required.
Answer the following statement true (T) or false (F)
Mass customization is ______.
A. the mass production of individually customized products B. the reuse of components discarded from scrapped products C. the redesign of components found to be faulty in earlier versions of a product D. the production of each product by hand for specific customers