Question 1

When the fixed manufacturing overhead cost is recorded, which of the following entries will be made?

Accepted Answer

A) ($16,300)in the FOH Volume Variance column 
B) $16,300 in the FOH Volume Variance column 
C) ($16,300)in the FOH Budget Variance column 
D) $16,300 in the FOH Budget Variance column 
A) ($16,300)in the FOH Volume Variance column 
B) $16,300 in the FOH Volume Variance column 
C) ($16,300)in the FOH Budget Variance column 
D) $16,300 in the FOH Budget Variance column

Question 2

Loos Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The direct labor standards for the company's only product specify 0.90 hours per unit at $21.50 per hour.During the year, the company started and completed 26,800 units.Direct labor employees worked 25,220 hours at an average cost of $22.50 per hour.

Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash, Raw Materials, Work in Process, Finished Goods, and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.

When the direct labor cost is recorded, which of the following entries will be made?

Accepted Answer

A) ($25,220)in the Labor Rate Variance column 
B) $25,220 in the Labor Rate Variance column 
C) $25,220 in the Labor Efficiency Variance column 
D) ($25,220)in the Labor Efficiency Variance column 
A) ($25,220)in the Labor Rate Variance column 
B) $25,220 in the Labor Rate Variance column 
C) $25,220 in the Labor Efficiency Variance column 
D) ($25,220)in the Labor Efficiency Variance column

Question 3

The ending balance in the Raw Materials account will be closest to:

Accepted Answer

A) $206,690 
B) $224,400 
C) $47,410 
D) $11,990 
A) $206,690 
B) $224,400 
C) $47,410 
D) $11,990

Question 4

Mccreary 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 and any variances are closed directly to Cost of Goods Sold.The standard cost of the company's product is $28.00per unit.During the year the company sold 27,500 units at $36.30 per unit.The actual selling and administrative expenses were $121,000 for the year.The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year:   The net operating income for the year is closest to:

Accepted Answer

A) $107,250 
B) $55,272 
C) $118,446 
D) $79,816 
A) $107,250 
B) $55,272 
C) $118,446 
D) $79,816

Question 5

When the raw materials used in production are recorded in transaction (b)above, which of the following entries will be made?

Accepted Answer

A) $650 in the Materials Quantity Variance column 
B) ($650)in the Materials Price Variance column 
C) ($650)in the Materials Quantity Variance column 
D) $650 in the Materials Price Variance column 
A) $650 in the Materials Quantity Variance column 
B) ($650)in the Materials Price Variance column 
C) ($650)in the Materials Quantity Variance column 
D) $650 in the Materials Price Variance column

Question 6

When recording the direct labor costs in transaction (c)above, the Work in Process inventory account will increase (decrease)by:

Accepted Answer

A) $201,300 
B) ($201,300) 
C) $209,745 
D) ($209,745) 
A) $201,300 
B) ($201,300) 
C) $209,745 
D) ($209,745)

Question 7

When recording the raw materials purchases in transaction (a)above, the Cash account will increase (decrease)by:

Accepted Answer

A) ($1,279,650) 
B) ($1,225,770) 
C) $1,279,650 
D) $1,225,770 
A) ($1,279,650) 
B) ($1,225,770) 
C) $1,279,650 
D) $1,225,770

Question 8

When recording the direct labor costs, the Cash account will increase (decrease)by:

Accepted Answer

A) $339,492 
B) ($318,780) 
C) $318,780 
D) ($339,492) 
A) $339,492 
B) ($318,780) 
C) $318,780 
D) ($339,492)

Question 9

Bialas Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standards for direct materials for the company's only product specify 1.6 liters per unit at $7.00 per liter or $11.20 per unit.During the year, the company purchased 36,400 liters of raw material at a price of $7.40 per liter and used 32,060 liters of the raw material to produce 20,100 units of work in process.

Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash, Raw Materials, Work in Process, Finished Goods, and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.

When the purchase of raw materials is recorded, which of the following entries will be made?

Accepted Answer

A) ($14,560)in the Materials Quantity Variance column 
B) ($14,560)in the Materials Price Variance column 
C) $14,560 in the Materials Price Variance column 
D) $14,560 in the Materials Quantity Variance column 
A) ($14,560)in the Materials Quantity Variance column 
B) ($14,560)in the Materials Price Variance column 
C) $14,560 in the Materials Price Variance column 
D) $14,560 in the Materials Quantity Variance column

Question 10

Lanciotti 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 and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The standard cost card for the company's only product is as follows:   
The company calculated the following variances for the year: 
  
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $276,000 and budgeted activity of 24,000 hours.

During the year, the company completed the following transactions:

a.Purchased 110,100 pounds of raw material at a price of $6.10 per pound.
b.Used 103,120 pounds of the raw material to produce 39,700 units of work in process.
c.Assigned direct labor costs to work in process.The direct labor workers (who were paid in cash)worked 29,060 hours at an average cost of $21.80 per hour.
d.Applied fixed overhead to the 39,700 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed.Actual fixed overhead costs for the year were $265,800.Of this total, $198,800 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $67,000 related to depreciation of manufacturing equipment.
e.Transferred 39,700 units from work in process to finished goods.
f.Sold for cash 34,600 units to customers at a price of $50.90 per unit.
g.Completed and transferred the standard cost associated with the 34,600 units sold from finished goods to cost of goods sold.
h.Paid $150,000 of selling and administrative expenses.
i.Closed all standard cost variances to cost of goods sold.

Required:
1.Record the above transactions in the worksheet that appears below.Because of the width of the worksheet, it is in two parts.In your text, these two parts would be joined side-by-side to make one very wide worksheet.The beginning balances have been provided for each of the accounts, including the Property, Plant, and Equipment (net)account which is abbreviated as PP&E (net).     
2.Determine the ending balance (e.g., 12/31 balance)in each account.
3.Prepare an income statement for the year.

Accepted Answer

1.& 2. @#IMG-DLM&_TB2627_00 @#IMG-DLM&_TB2627_00 The explana

Question 11

Sobus 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 and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The fixed manufacturing overhead standards for the company's only product specify 0.70 hours per unit at $4.00 per hour.The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $70,000 and budgeted activity of 17,500 hours.During the year, 19,700 units were started and completed.Actual fixed overhead costs for the year were $57,700.

Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash, Raw Materials, Work in Process, Finished Goods, and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.

When applying fixed manufacturing overhead to production, the Work in Process inventory account will increase (decrease)by:

Accepted Answer

A) $55,160 
B) ($26,300) 
C) $26,300 
D) ($55,160) 
A) $55,160 
B) ($26,300) 
C) $26,300 
D) ($55,160)

Question 12

Siciliano Corporation manufactures one product.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:  
 During the year, the company completed the following transactions concerning raw materials:

a.Purchased 34,800 kilos of raw material at a price of $4.60 per kilo.
b.Used 32,750 kilos of the raw material to produce 21,900 units of work in process.

Required:
Record the above transactions in the worksheet that appears below.Because of the width of the worksheet, it is in two parts.In your text, these two parts would be joined side-by-side to make one very wide worksheet.The beginning balances have been provided for each of the accounts, including the Property, Plant, and Equipment (net)account which is abbreviated as PP&E (net).

Accepted Answer

Materials price variance = AQ × (AP - SP

Question 13

Ciresi 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 and any variances are closed directly to Cost of Goods Sold.The company has provided the following information:   The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year:   The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to:

Accepted Answer

A) $1,066,952 
B) $877,902 
C) $730,330 
D) $582,758 
A) $1,066,952 
B) $877,902 
C) $730,330 
D) $582,758

Question 14

Lisser Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standards for direct materials for the company's only product specify 2.7 liters per unit at $7.50 per liter or $20.25 per unit.During the year, the company purchased 67,300 liters of raw material at a price of $8.00 per liter and used 61,660 liters of the raw material to produce 22,800 units of work in process.

Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash, Raw Materials, Work in Process, Finished Goods, and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.

When recording the raw materials used in production, the Raw Materials inventory account will increase (decrease)by:

Accepted Answer

A) ($493,280) 
B) $493,280 
C) $462,450 
D) ($462,450) 
A) ($493,280) 
B) $493,280 
C) $462,450 
D) ($462,450)

Question 15

When the raw materials used in production are recorded in transaction (b)above, which of the following entries will be made?

Accepted Answer

A) ($900)in the Materials Quantity Variance column 
B) ($900)in the Materials Price Variance column 
C) $900 in the Materials Price Variance column 
D) $900 in the Materials Quantity Variance column 
A) ($900)in the Materials Quantity Variance column 
B) ($900)in the Materials Price Variance column 
C) $900 in the Materials Price Variance column 
D) $900 in the Materials Quantity Variance column

Question 16

When the raw materials used in production are recorded in transaction (b)above, which of the following entries will be made?

Accepted Answer

A) ($550)in the Materials Price Variance column 
B) ($550)in the Materials Quantity Variance column 
C) $550 in the Materials Price Variance column 
D) $550 in the Materials Quantity Variance column 
A) ($550)in the Materials Price Variance column 
B) ($550)in the Materials Quantity Variance column 
C) $550 in the Materials Price Variance column 
D) $550 in the Materials Quantity Variance column

Question 17

The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to:

Accepted Answer

A) $784,496 
B) $1,160,621 
C) $938,985 
D) $1,093,474 
A) $784,496 
B) $1,160,621 
C) $938,985 
D) $1,093,474

Question 18

The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to:

Accepted Answer

A) $913,780 
B) $1,190,385 
C) $947,605 
D) $879,955 
A) $913,780 
B) $1,190,385 
C) $947,605 
D) $879,955

Question 19

When recording the direct labor costs, the Work in Process inventory account will increase (decrease)by:

Accepted Answer

A) $318,780 
B) ($339,492) 
C) $339,492 
D) ($318,780) 
A) $318,780 
B) ($339,492) 
C) $339,492 
D) ($318,780)

Question 20

When recording the raw materials purchases in transaction (a)above, the Cash account will increase (decrease)by:

Accepted Answer

A) ($501,500) 
B) $501,500 
C) $542,800 
D) ($542,800) 
A) ($501,500) 
B) $501,500 
C) $542,800 
D) ($542,800)

When the fixed manufacturing overhead cost is recorded, which of the following entries will be made?

The ending balance in the Raw Materials account will be closest to:

When the raw materials used in production are recorded in transaction (b)above, which of the following entries will be made?

When recording the direct labor costs in transaction (c)above, the Work in Process inventory account will increase (decrease)by:

When recording the raw materials purchases in transaction (a)above, the Cash account will increase (decrease)by:

When recording the direct labor costs, the Cash account will increase (decrease)by:

When the raw materials used in production are recorded in transaction (b)above, which of the following entries will be made?

When the raw materials used in production are recorded in transaction (b)above, which of the following entries will be made?

The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to:

The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to:

When recording the direct labor costs, the Work in Process inventory account will increase (decrease)by:

When recording the raw materials purchases in transaction (a)above, the Cash account will increase (decrease)by:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

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Exam 19: Flexible Budgets, Standard Costs, and Variance Analysis

When the fixed manufacturing overhead cost is recorded, which of the following entries will be made?

The ending balance in the Raw Materials account will be closest to:

When the raw materials used in production are recorded in transaction (b)above, which of the following entries will be made?

When recording the direct labor costs in transaction (c)above, the Work in Process inventory account will increase (decrease)by:

When recording the raw materials purchases in transaction (a)above, the Cash account will increase (decrease)by:

When recording the direct labor costs, the Cash account will increase (decrease)by:

When the raw materials used in production are recorded in transaction (b)above, which of the following entries will be made?

When the raw materials used in production are recorded in transaction (b)above, which of the following entries will be made?

The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to:

The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to:

When recording the direct labor costs, the Work in Process inventory account will increase (decrease)by:

When recording the raw materials purchases in transaction (a)above, the Cash account will increase (decrease)by:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters