Robnett 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 materials3.8liters$6.50per liter$24.70Direct labor0.60hours$18.00per hour 10.80Fixed manufacturing overhead0.60hours$18.50per hour 11.10Total standard cost per unit $46.60During the year, the company completed the following transactions:a. Purchased 106,900 liters of raw material at a price of $6.80 per liter.b. Used 93,760 liters of the raw material to produce 24,700 units of
work in process.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)?1/1$1,110,000$54,340$0$60,580$616,800=a.?????=b.?????=?Materials Price VarianceMaterials Quantity VarianceLabor Rate VarianceLabor Efficiency VarianceFOH Budget VarianceFOH Volume VarianceRetained Earnings1/1$0$0$0$0$0$0$1,841,720a.???????b.???????When recording the raw materials used in production in transaction (b) above, the Raw Materials inventory account will increase (decrease) by:
A. $609,440
B. ($637,568)
C. ($609,440)
D. $637,568
Answer: C
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An employer's exclusion of workers from a workplace until they meet certain conditions is known as a
A. sabbatical. B. picket line. C. strike. D. mediation. E. lockout.
Production quality is affected by
a. worker productivity. b. the amount of failure costs incurred. c. worker skill level. d. just-in-time suppliers.
Bruce, a manufacturing supervisor, sends a mixed message (in the technical meaning of the term) to his group members when he
A) speaks mostly English and some Spanish during the meeting. B) tells the group that he likes some of what the group is accomplishing but not every thing. C) wants to increase both quality and quantity of the group's output. D) arrives fifteen minutes late to a meeting he is holding to discuss the importance of promptness.
?A project with more corporate risk than average will also have:
A. ?less political risk. B. ?more beta risk. C. ?less project risk. D. ?less exchange rate risk. E. ?less depreciation risk