Deck 28: Journal Entries to Record Variances

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Question
When the actual direct labor-hours are less than the standard direct labor-hours allowed for the actual output of the period, the journal entry would include:

A) Credit to Wages Payable; Credit to Labor Efficiency Variance
B) Credit to Work-In-Process; Credit to Labor Efficiency Variance
C) Credit to Wages Payable; Debit to Labor Efficiency Variance
D) Credit to Work-In-Process; Debit to Labor Efficiency Variance
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Question
A favorable materials quantity variance would appear as a debit in a journal entry.
Question
Lafaso Corporation has provided the following data concerning its direct labor costs for July: <strong>Lafaso Corporation has provided the following data concerning its direct labor costs for July:   The Labor Rate Variance for July would be recorded as a:</strong> A) credit of $7,014. B) debit of $8,584. C) debit of $7,014. D) credit of $8,584. <div style=padding-top: 35px>
The Labor Rate Variance for July would be recorded as a:

A) credit of $7,014.
B) debit of $8,584.
C) debit of $7,014.
D) credit of $8,584.
Question
When the actual price paid on credit for a raw material is less than its standard price, the journal entry would include:

A) Debit to Raw Materials; Credit to Materials Price Variance
B) Debit to Accounts Payable; Credit to Materials Price Variance
C) Debit to Raw Materials; Debit to Materials Price Variance
D) Debit to Accounts Payable; Debit to Materials Price Variance
Question
Manikas Corporation has provided the following data concerning its most important raw material, compound V82T: <strong>Manikas Corporation has provided the following data concerning its most important raw material, compound V82T:   When recording the purchase of materials, Raw Materials would be:</strong> A) debited for $148,920. B) credited for $149,650. C) debited for $149,650. D) credited for $148,920. <div style=padding-top: 35px>
When recording the purchase of materials, Raw Materials would be:

A) debited for $148,920.
B) credited for $149,650.
C) debited for $149,650.
D) credited for $148,920.
Question
Kirsch Corporation's standard wage rate is $13.40 per direct labor-hour (DLH) and according to the standards, each unit of output requires 8.9 DLHs. In May, 5,000 units were produced, the actual wage rate was $12.80 per DLH, and the actual hours were 41,790 DLHs. In the journal entry to record the incurrence of direct labor costs in May, the Work in Process entry would consist of a:

A) debit of $596,300.
B) debit of $534,912.
C) credit of $534,912.
D) credit of $596,300.
Question
Lemoine Corporation's standard wage rate is $11.50 per direct labor-hour (DLH) and according to the standards, each unit of output requires 5.5 DLHs. In February, 8,900 units were produced, the actual wage rate was $11.60 per DLH, and the actual hours were 51,210 DLHs. The Labor Rate Variance for February would be recorded as a:

A) debit of $5,121.
B) credit of $4,895.
C) credit of $5,121.
D) debit of $4,895.
Question
The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: <strong>The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip:   There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board feet at the total cost of $24,000. Used 12,000 board feet to produce 2,100 Mips. Used 1,700 hours of direct labor time at a total cost of $20,060.  -To record the purchase of direct materials, the general ledger would include what entry to the Materials Price Variance Account?</strong> A) $1,500 credit B) $1,500 debit C) $6,000 credit D) $6,000 debit <div style=padding-top: 35px> There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.

-To record the purchase of direct materials, the general ledger would include what entry to the Materials Price Variance Account?

A) $1,500 credit
B) $1,500 debit
C) $6,000 credit
D) $6,000 debit
Question
Drake Company purchased materials on account. The entry to record the purchase of materials having a standard cost of $1.50 per pound from a supplier at $1.60 per pound would include a:

A) credit to Raw Materials Inventory.
B) debit to Work in Process.
C) credit to Materials Price Variance.
D) debit to Materials Price Variance.
Question
Kouba Manufacturing Corporation's actual direct labor cost for the month of July was $45,000. Its labor rate variance for July was $1,000 unfavorable. Its labor efficiency variance was $5,000 favorable. What summary journal entry would Kouba make to record this information?

A) <strong>Kouba Manufacturing Corporation's actual direct labor cost for the month of July was $45,000. Its labor rate variance for July was $1,000 unfavorable. Its labor efficiency variance was $5,000 favorable. What summary journal entry would Kouba make to record this information?</strong> A)   B)   C)   D)   <div style=padding-top: 35px>
B) <strong>Kouba Manufacturing Corporation's actual direct labor cost for the month of July was $45,000. Its labor rate variance for July was $1,000 unfavorable. Its labor efficiency variance was $5,000 favorable. What summary journal entry would Kouba make to record this information?</strong> A)   B)   C)   D)   <div style=padding-top: 35px>
C) <strong>Kouba Manufacturing Corporation's actual direct labor cost for the month of July was $45,000. Its labor rate variance for July was $1,000 unfavorable. Its labor efficiency variance was $5,000 favorable. What summary journal entry would Kouba make to record this information?</strong> A)   B)   C)   D)   <div style=padding-top: 35px>
D) <strong>Kouba Manufacturing Corporation's actual direct labor cost for the month of July was $45,000. Its labor rate variance for July was $1,000 unfavorable. Its labor efficiency variance was $5,000 favorable. What summary journal entry would Kouba make to record this information?</strong> A)   B)   C)   D)   <div style=padding-top: 35px>
Question
Which of the following entries would correctly record the charging of direct labor costs to Work in Process given an unfavorable labor efficiency variance and a favorable labor rate variance?

A) <strong>Which of the following entries would correctly record the charging of direct labor costs to Work in Process given an unfavorable labor efficiency variance and a favorable labor rate variance?</strong> A)   B)   C)   D)   <div style=padding-top: 35px>
B) <strong>Which of the following entries would correctly record the charging of direct labor costs to Work in Process given an unfavorable labor efficiency variance and a favorable labor rate variance?</strong> A)   B)   C)   D)   <div style=padding-top: 35px>
C) <strong>Which of the following entries would correctly record the charging of direct labor costs to Work in Process given an unfavorable labor efficiency variance and a favorable labor rate variance?</strong> A)   B)   C)   D)   <div style=padding-top: 35px>
D) <strong>Which of the following entries would correctly record the charging of direct labor costs to Work in Process given an unfavorable labor efficiency variance and a favorable labor rate variance?</strong> A)   B)   C)   D)   <div style=padding-top: 35px>
Question
When the actual wage rate paid to direct labor workers is less than the standard wage rate, the journal entry would include:

A) Credit to Wages Payable; Credit to Labor Rate Variance
B) Credit to Work-In-Process; Credit to Labor Rate Variance
C) Credit to Wages Payable; Debit to Labor Rate Variance
D) Credit to Work-In-Process; Debit to Labor Rate Variance
Question
Curd Corporation has provided the following data concerning its most important raw material, compound J33X: <strong>Curd Corporation has provided the following data concerning its most important raw material, compound J33X:   When recording the use of materials in production, Raw Materials would be:</strong> A) debited for $41,417. B) credited for $41,417. C) debited for $38,922. D) credited for $38,922. <div style=padding-top: 35px>
When recording the use of materials in production, Raw Materials would be:

A) debited for $41,417.
B) credited for $41,417.
C) debited for $38,922.
D) credited for $38,922.
Question
Data concerning the direct labor costs for December of Dimpfl Corporation appear below: <strong>Data concerning the direct labor costs for December of Dimpfl Corporation appear below:   The journal entry to record the incurrence of direct labor costs in December would include the following for Work in Process:</strong> A) credit of $296,424. B) debit of $296,424. C) credit of $388,962. D) debit of $388,962. <div style=padding-top: 35px>
The journal entry to record the incurrence of direct labor costs in December would include the following for Work in Process:

A) credit of $296,424.
B) debit of $296,424.
C) credit of $388,962.
D) debit of $388,962.
Question
Murdough Corporation's standard wage rate is $10.80 per direct labor-hour (DLH) and according to the standards, each unit of output requires 2.0 DLHs. In February, 1,800 units were produced, the actual wage rate was $9.80 per DLH, and the actual hours were 3,990 DLHs. The Labor Efficiency Variance for February would be recorded as a:

A) debit of $4,212.
B) credit of $4,212.
C) debit of $3,822.
D) credit of $3,822.
Question
A favorable labor efficiency variance would result in a credit balance in the labor efficiency variance account.
Question
Compound V61Z is used to make Rigby Corporation's major product. The standard cost of compound V61Z is $33.60 per ounce and the standard quantity is 5.5 ounces per unit of output. In the most recent month, 3,130 ounces of the compound were used to make 700 units of the output. When recording the use of materials in production, Raw Materials would be:

A) credited for $129,360.
B) credited for $105,168.
C) debited for $105,168.
D) debited for $129,360.
Question
Compound G92N is used to make Passero Corporation's major product. The standard cost of G92N is $28.60 per ounce and the standard quantity is 2.9 ounces per unit of output. In the most recent month, 2,000 ounces of the raw material were purchased at a cost of $29.50 per ounce. When recording the purchase of materials, Raw Materials would be:

A) credited for $59,000.
B) debited for $57,200.
C) credited for $57,200.
D) debited for $59,000.
Question
Capizzi Corporation has provided the following data concerning its direct labor costs for February: <strong>Capizzi Corporation has provided the following data concerning its direct labor costs for February:   The Labor Efficiency Variance for February would be recorded as a:</strong> A) debit of $45,562. B) credit of $45,562. C) debit of $44,726. D) credit of $44,726. <div style=padding-top: 35px>
The Labor Efficiency Variance for February would be recorded as a:

A) debit of $45,562.
B) credit of $45,562.
C) debit of $44,726.
D) credit of $44,726.
Question
When the actual amount of a raw material used in production is less than the standard amount allowed for the actual output, the journal entry would include:

A) Debit to Raw Materials; Credit to Materials Quantity Variance
B) Debit to Work-In-Process; Credit to Materials Quantity Variance
C) Debit to Raw Materials; Debit to Materials Quantity Variance
D) Debit to Work-In-Process; Debit to Materials Quantity Variance
Question
Henifin Corporation has provided the following data concerning its most important raw material, compound K91J: <strong>Henifin Corporation has provided the following data concerning its most important raw material, compound K91J:   The raw material was purchased on account. The Materials Price Variance for January would be recorded as a:</strong> A) Credit of $540 B) Debit of $306 C) Credit of $306 D) Debit of $540 <div style=padding-top: 35px> The raw material was purchased on account.
The Materials Price Variance for January would be recorded as a:

A) Credit of $540
B) Debit of $306
C) Credit of $306
D) Debit of $540
Question
Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below: <strong>Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below:   The raw material was purchased on account. The debits to the Raw Materials account for September would total:</strong> A) $41,250 B) $30,942 C) $30,560 D) $42,020 <div style=padding-top: 35px> The raw material was purchased on account.
The debits to the Raw Materials account for September would total:

A) $41,250
B) $30,942
C) $30,560
D) $42,020
Question
The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: <strong>The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip:   There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board feet at the total cost of $24,000. Used 12,000 board feet to produce 2,100 Mips. Used 1,700 hours of direct labor time at a total cost of $20,060.  -To record the use of direct materials in production, the general ledger would include what entry to the Materials Quantity Variance account?</strong> A) $3,600 debit B) $3,600 credit C) $900 debit D) $900 credit <div style=padding-top: 35px> There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.

-To record the use of direct materials in production, the general ledger would include what entry to the Materials Quantity Variance account?

A) $3,600 debit
B) $3,600 credit
C) $900 debit
D) $900 credit
Question
Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below: <strong>Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below:   The raw material was purchased on account. The Materials Quantity Variance for September would be recorded as a:</strong> A) Debit of $382 B) Credit of $11,078 C) Credit of $382 D) Debit of $11,078 <div style=padding-top: 35px> The raw material was purchased on account.
The Materials Quantity Variance for September would be recorded as a:

A) Debit of $382
B) Credit of $11,078
C) Credit of $382
D) Debit of $11,078
Question
Castanada Corporation has provided the following data concerning its direct labor costs for August: <strong>Castanada Corporation has provided the following data concerning its direct labor costs for August:   The journal entry to record the incurrence of direct labor costs in August would include the following for Work in Process:</strong> A) Debit of $222,768 B) Credit of $264,768 C) Credit of $222,768 D) Debit of $264,768 <div style=padding-top: 35px>
The journal entry to record the incurrence of direct labor costs in August would include the following for Work in Process:

A) Debit of $222,768
B) Credit of $264,768
C) Credit of $222,768
D) Debit of $264,768
Question
Lian Corporation's standard wage rate is $12.10 per direct labor-hour (DLH) and according to the standards, each unit of output requires 7.1 DLHs. In June, 4,500 units were produced, the actual wage rate was $11.90 per DLH, and the actual hours were 35,930 DLHs.
The Labor Efficiency Variance for June would be recorded as a:

A) debit of $47,362.
B) debit of $48,158.
C) credit of $48,158.
D) credit of $47,362.
Question
Castanada Corporation has provided the following data concerning its direct labor costs for August: <strong>Castanada Corporation has provided the following data concerning its direct labor costs for August:   The Labor Rate Variance for August would be recorded as a:</strong> A) Debit of $18,912 B) Credit of $18,912 C) Credit of $17,136 D) Debit of $17,136 <div style=padding-top: 35px>
The Labor Rate Variance for August would be recorded as a:

A) Debit of $18,912
B) Credit of $18,912
C) Credit of $17,136
D) Debit of $17,136
Question
The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: <strong>The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip:   There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board feet at the total cost of $24,000. Used 12,000 board feet to produce 2,100 Mips. Used 1,700 hours of direct labor time at a total cost of $20,060.  -To record the incurrence of direct labor cost and its use in production, the general ledger would include what entry to the Labor Rate Variance account?</strong> A) $240 credit B) $240 debit C) $340 debit D) $340 credit <div style=padding-top: 35px> There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.

-To record the incurrence of direct labor cost and its use in production, the general ledger would include what entry to the Labor Rate Variance account?

A) $240 credit
B) $240 debit
C) $340 debit
D) $340 credit
Question
The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: <strong>The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip:   There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board feet at the total cost of $24,000. Used 12,000 board feet to produce 2,100 Mips. Used 1,700 hours of direct labor time at a total cost of $20,060.  -To record the incurrence of direct labor costs and its use in production, the general ledger would include what entry to the Labor Efficiency Variance account?</strong> A) $480 credit B) $240 debit C) $1,200 debit D) $1,200 credit <div style=padding-top: 35px> There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.

-To record the incurrence of direct labor costs and its use in production, the general ledger would include what entry to the Labor Efficiency Variance account?

A) $480 credit
B) $240 debit
C) $1,200 debit
D) $1,200 credit
Question
Castanada Corporation has provided the following data concerning its direct labor costs for August: <strong>Castanada Corporation has provided the following data concerning its direct labor costs for August:   The Labor Efficiency Variance for August would be recorded as a:</strong> A) Credit of $24,864 B) Debit of $24,864 C) Debit of $23,088 D) Credit of $23,088 <div style=padding-top: 35px>
The Labor Efficiency Variance for August would be recorded as a:

A) Credit of $24,864
B) Debit of $24,864
C) Debit of $23,088
D) Credit of $23,088
Question
Henifin Corporation has provided the following data concerning its most important raw material, compound K91J: <strong>Henifin Corporation has provided the following data concerning its most important raw material, compound K91J:   The raw material was purchased on account. The debits to the Raw Materials account for January would total:</strong> A) $39,330 B) $21,981 C) $19,395 D) $38,790 <div style=padding-top: 35px> The raw material was purchased on account.
The debits to the Raw Materials account for January would total:

A) $39,330
B) $21,981
C) $19,395
D) $38,790
Question
Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below: <strong>Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below:   The raw material was purchased on account. The Materials Price Variance for September would be recorded as a:</strong> A) Credit of $567 B) Credit of $770 C) Debit of $567 D) Debit of $770 <div style=padding-top: 35px> The raw material was purchased on account.
The Materials Price Variance for September would be recorded as a:

A) Credit of $567
B) Credit of $770
C) Debit of $567
D) Debit of $770
Question
Vernon Mills, Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The standard costs and actual costs per unit of product for a recent period are given below for one of the company's product lines: Vernon Mills, Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The standard costs and actual costs per unit of product for a recent period are given below for one of the company's product lines:   During this period, the company produced 4,800 units of this product. A comparison of standard and actual costs for the period on a total cost basis is given below:   There was no inventory of materials on hand at the beginning of the period. During the period, 21,120 yards of materials were purchased, all of which were used in production. Required: a. For direct materials, compute the price and quantity variances for the period and prepare journal entries to record all activity relating to direct materials for the period. b. For direct labor, compute the rate and efficiency variances and prepare a journal entry to record the incurrence of direct labor cost for the period. c. For variable overhead, compute the rate and efficiency variances.<div style=padding-top: 35px>
During this period, the company produced 4,800 units of this product. A comparison of standard and actual costs for the period on a total cost basis is given below: Vernon Mills, Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The standard costs and actual costs per unit of product for a recent period are given below for one of the company's product lines:   During this period, the company produced 4,800 units of this product. A comparison of standard and actual costs for the period on a total cost basis is given below:   There was no inventory of materials on hand at the beginning of the period. During the period, 21,120 yards of materials were purchased, all of which were used in production. Required: a. For direct materials, compute the price and quantity variances for the period and prepare journal entries to record all activity relating to direct materials for the period. b. For direct labor, compute the rate and efficiency variances and prepare a journal entry to record the incurrence of direct labor cost for the period. c. For variable overhead, compute the rate and efficiency variances.<div style=padding-top: 35px>
There was no inventory of materials on hand at the beginning of the period. During the period, 21,120 yards of materials were purchased, all of which were used in production.
Required:
a. For direct materials, compute the price and quantity variances for the period and prepare journal entries to record all activity relating to direct materials for the period.
b. For direct labor, compute the rate and efficiency variances and prepare a journal entry to record the incurrence of direct labor cost for the period.
c. For variable overhead, compute the rate and efficiency variances.
Question
Lian Corporation's standard wage rate is $12.10 per direct labor-hour (DLH) and according to the standards, each unit of output requires 7.1 DLHs. In June, 4,500 units were produced, the actual wage rate was $11.90 per DLH, and the actual hours were 35,930 DLHs.
The Labor Rate Variance for June would be recorded as a:

A) credit of $6,390.
B) credit of $7,186.
C) debit of $7,186.
D) debit of $6,390.
Question
Henifin Corporation has provided the following data concerning its most important raw material, compound K91J: <strong>Henifin Corporation has provided the following data concerning its most important raw material, compound K91J:   The raw material was purchased on account. The Materials Quantity Variance for January would be recorded as a:</strong> A) Credit of $2,586 B) Credit of $16,809 C) Debit of $16,809 D) Debit of $2,586 <div style=padding-top: 35px> The raw material was purchased on account.
The Materials Quantity Variance for January would be recorded as a:

A) Credit of $2,586
B) Credit of $16,809
C) Debit of $16,809
D) Debit of $2,586
Question
Lian Corporation's standard wage rate is $12.10 per direct labor-hour (DLH) and according to the standards, each unit of output requires 7.1 DLHs. In June, 4,500 units were produced, the actual wage rate was $11.90 per DLH, and the actual hours were 35,930 DLHs.
In the journal entry to record the incurrence of direct labor costs in June, the Work in Process entry would consist of a:

A) debit of $427,567.
B) credit of $427,567.
C) debit of $386,595.
D) credit of $386,595.
Question
Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below: <strong>Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below:   The raw material was purchased on account. The credits to the Raw Materials account for September would total:</strong> A) $30,560 B) $41,250 C) $30,942 D) $42,020 <div style=padding-top: 35px> The raw material was purchased on account.
The credits to the Raw Materials account for September would total:

A) $30,560
B) $41,250
C) $30,942
D) $42,020
Question
The following standards have been established for a raw material used in the production of product N70:
Question
Henifin Corporation has provided the following data concerning its most important raw material, compound K91J: <strong>Henifin Corporation has provided the following data concerning its most important raw material, compound K91J:   The raw material was purchased on account. The credits to the Raw Materials account for January would total:</strong> A) $21,981 B) $19,395 C) $38,790 D) $39,330 <div style=padding-top: 35px> The raw material was purchased on account.
The credits to the Raw Materials account for January would total:

A) $21,981
B) $19,395
C) $38,790
D) $39,330
Question
The standards for product C78 call for 2.0 pounds of a raw material that costs $13.30 per pound. Last month, 5,900 pounds of the raw material were purchased for $74,045. The actual output of the month was 2,640 units of product C78. A total of 5,300 pounds of the raw material were used to produce this output.
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
c. Prepare journal entries to record the purchase and use of the raw material during the month. (All raw materials are purchased on account.)
Question
Compound A39A is used by Ashline Corporation to make one of its products. The standard cost of compound A39A is $32.00 per ounce and the standard quantity is 8.5 per unit of output. Data concerning the compound in the most recent month appear below: Compound A39A is used by Ashline Corporation to make one of its products. The standard cost of compound A39A is $32.00 per ounce and the standard quantity is 8.5 per unit of output. Data concerning the compound in the most recent month appear below:   The raw material was purchased on account. Required: a. Record the purchase of the raw material in a journal entry. b. Record the use of the raw material in production in a journal entry.<div style=padding-top: 35px>
The raw material was purchased on account.
Required:
a. Record the purchase of the raw material in a journal entry.
b. Record the use of the raw material in production in a journal entry.
Question
Schinkel Corporation has provided the following data concerning its most important raw material, compound X87C: Schinkel Corporation has provided the following data concerning its most important raw material, compound X87C:   The raw material was purchased on account. Required: a. Record the purchase of the raw material in a journal entry. b. Record the use of the raw material in production in a journal entry.<div style=padding-top: 35px>
The raw material was purchased on account.
Required:
a. Record the purchase of the raw material in a journal entry.
b. Record the use of the raw material in production in a journal entry.
Question
The following direct labor standards have been established for product K62G:
Question
The direct labor standards at Lounsbury Corporation are $12.50 per direct labor-hour (DLH) and 6.1 DLHs per unit of output. In November, 4,700 units were produced, the actual wage rate was $12.50 per DLH, and the actual hours were 29,570 DLHs.
Required:
Prepare the journal entry to record the incurrence of direct labor costs.
Question
The standards for product V33I specify 8.0 direct labor-hours per unit at $11.20 per direct labor-hour. Last month 760 units of product V33I were produced using 6,500 direct labor-hours at a total direct labor wage cost of $75,075.
Required:
a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?
c. Prepare a journal entry to record direct labor costs during the month, including the direct labor variances.
Question
Martorella Corporation has provided the following data concerning its direct labor costs for October: Martorella Corporation has provided the following data concerning its direct labor costs for October:   Required: Prepare the journal entry to record the incurrence of direct labor costs.<div style=padding-top: 35px>
Required:
Prepare the journal entry to record the incurrence of direct labor costs.
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Deck 28: Journal Entries to Record Variances
1
When the actual direct labor-hours are less than the standard direct labor-hours allowed for the actual output of the period, the journal entry would include:

A) Credit to Wages Payable; Credit to Labor Efficiency Variance
B) Credit to Work-In-Process; Credit to Labor Efficiency Variance
C) Credit to Wages Payable; Debit to Labor Efficiency Variance
D) Credit to Work-In-Process; Debit to Labor Efficiency Variance
A
2
A favorable materials quantity variance would appear as a debit in a journal entry.
False
3
Lafaso Corporation has provided the following data concerning its direct labor costs for July: <strong>Lafaso Corporation has provided the following data concerning its direct labor costs for July:   The Labor Rate Variance for July would be recorded as a:</strong> A) credit of $7,014. B) debit of $8,584. C) debit of $7,014. D) credit of $8,584.
The Labor Rate Variance for July would be recorded as a:

A) credit of $7,014.
B) debit of $8,584.
C) debit of $7,014.
D) credit of $8,584.
A
4
When the actual price paid on credit for a raw material is less than its standard price, the journal entry would include:

A) Debit to Raw Materials; Credit to Materials Price Variance
B) Debit to Accounts Payable; Credit to Materials Price Variance
C) Debit to Raw Materials; Debit to Materials Price Variance
D) Debit to Accounts Payable; Debit to Materials Price Variance
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5
Manikas Corporation has provided the following data concerning its most important raw material, compound V82T: <strong>Manikas Corporation has provided the following data concerning its most important raw material, compound V82T:   When recording the purchase of materials, Raw Materials would be:</strong> A) debited for $148,920. B) credited for $149,650. C) debited for $149,650. D) credited for $148,920.
When recording the purchase of materials, Raw Materials would be:

A) debited for $148,920.
B) credited for $149,650.
C) debited for $149,650.
D) credited for $148,920.
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6
Kirsch Corporation's standard wage rate is $13.40 per direct labor-hour (DLH) and according to the standards, each unit of output requires 8.9 DLHs. In May, 5,000 units were produced, the actual wage rate was $12.80 per DLH, and the actual hours were 41,790 DLHs. In the journal entry to record the incurrence of direct labor costs in May, the Work in Process entry would consist of a:

A) debit of $596,300.
B) debit of $534,912.
C) credit of $534,912.
D) credit of $596,300.
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7
Lemoine Corporation's standard wage rate is $11.50 per direct labor-hour (DLH) and according to the standards, each unit of output requires 5.5 DLHs. In February, 8,900 units were produced, the actual wage rate was $11.60 per DLH, and the actual hours were 51,210 DLHs. The Labor Rate Variance for February would be recorded as a:

A) debit of $5,121.
B) credit of $4,895.
C) credit of $5,121.
D) debit of $4,895.
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8
The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: <strong>The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip:   There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board feet at the total cost of $24,000. Used 12,000 board feet to produce 2,100 Mips. Used 1,700 hours of direct labor time at a total cost of $20,060.  -To record the purchase of direct materials, the general ledger would include what entry to the Materials Price Variance Account?</strong> A) $1,500 credit B) $1,500 debit C) $6,000 credit D) $6,000 debit There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.

-To record the purchase of direct materials, the general ledger would include what entry to the Materials Price Variance Account?

A) $1,500 credit
B) $1,500 debit
C) $6,000 credit
D) $6,000 debit
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9
Drake Company purchased materials on account. The entry to record the purchase of materials having a standard cost of $1.50 per pound from a supplier at $1.60 per pound would include a:

A) credit to Raw Materials Inventory.
B) debit to Work in Process.
C) credit to Materials Price Variance.
D) debit to Materials Price Variance.
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10
Kouba Manufacturing Corporation's actual direct labor cost for the month of July was $45,000. Its labor rate variance for July was $1,000 unfavorable. Its labor efficiency variance was $5,000 favorable. What summary journal entry would Kouba make to record this information?

A) <strong>Kouba Manufacturing Corporation's actual direct labor cost for the month of July was $45,000. Its labor rate variance for July was $1,000 unfavorable. Its labor efficiency variance was $5,000 favorable. What summary journal entry would Kouba make to record this information?</strong> A)   B)   C)   D)
B) <strong>Kouba Manufacturing Corporation's actual direct labor cost for the month of July was $45,000. Its labor rate variance for July was $1,000 unfavorable. Its labor efficiency variance was $5,000 favorable. What summary journal entry would Kouba make to record this information?</strong> A)   B)   C)   D)
C) <strong>Kouba Manufacturing Corporation's actual direct labor cost for the month of July was $45,000. Its labor rate variance for July was $1,000 unfavorable. Its labor efficiency variance was $5,000 favorable. What summary journal entry would Kouba make to record this information?</strong> A)   B)   C)   D)
D) <strong>Kouba Manufacturing Corporation's actual direct labor cost for the month of July was $45,000. Its labor rate variance for July was $1,000 unfavorable. Its labor efficiency variance was $5,000 favorable. What summary journal entry would Kouba make to record this information?</strong> A)   B)   C)   D)
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11
Which of the following entries would correctly record the charging of direct labor costs to Work in Process given an unfavorable labor efficiency variance and a favorable labor rate variance?

A) <strong>Which of the following entries would correctly record the charging of direct labor costs to Work in Process given an unfavorable labor efficiency variance and a favorable labor rate variance?</strong> A)   B)   C)   D)
B) <strong>Which of the following entries would correctly record the charging of direct labor costs to Work in Process given an unfavorable labor efficiency variance and a favorable labor rate variance?</strong> A)   B)   C)   D)
C) <strong>Which of the following entries would correctly record the charging of direct labor costs to Work in Process given an unfavorable labor efficiency variance and a favorable labor rate variance?</strong> A)   B)   C)   D)
D) <strong>Which of the following entries would correctly record the charging of direct labor costs to Work in Process given an unfavorable labor efficiency variance and a favorable labor rate variance?</strong> A)   B)   C)   D)
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12
When the actual wage rate paid to direct labor workers is less than the standard wage rate, the journal entry would include:

A) Credit to Wages Payable; Credit to Labor Rate Variance
B) Credit to Work-In-Process; Credit to Labor Rate Variance
C) Credit to Wages Payable; Debit to Labor Rate Variance
D) Credit to Work-In-Process; Debit to Labor Rate Variance
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13
Curd Corporation has provided the following data concerning its most important raw material, compound J33X: <strong>Curd Corporation has provided the following data concerning its most important raw material, compound J33X:   When recording the use of materials in production, Raw Materials would be:</strong> A) debited for $41,417. B) credited for $41,417. C) debited for $38,922. D) credited for $38,922.
When recording the use of materials in production, Raw Materials would be:

A) debited for $41,417.
B) credited for $41,417.
C) debited for $38,922.
D) credited for $38,922.
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14
Data concerning the direct labor costs for December of Dimpfl Corporation appear below: <strong>Data concerning the direct labor costs for December of Dimpfl Corporation appear below:   The journal entry to record the incurrence of direct labor costs in December would include the following for Work in Process:</strong> A) credit of $296,424. B) debit of $296,424. C) credit of $388,962. D) debit of $388,962.
The journal entry to record the incurrence of direct labor costs in December would include the following for Work in Process:

A) credit of $296,424.
B) debit of $296,424.
C) credit of $388,962.
D) debit of $388,962.
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15
Murdough Corporation's standard wage rate is $10.80 per direct labor-hour (DLH) and according to the standards, each unit of output requires 2.0 DLHs. In February, 1,800 units were produced, the actual wage rate was $9.80 per DLH, and the actual hours were 3,990 DLHs. The Labor Efficiency Variance for February would be recorded as a:

A) debit of $4,212.
B) credit of $4,212.
C) debit of $3,822.
D) credit of $3,822.
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16
A favorable labor efficiency variance would result in a credit balance in the labor efficiency variance account.
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17
Compound V61Z is used to make Rigby Corporation's major product. The standard cost of compound V61Z is $33.60 per ounce and the standard quantity is 5.5 ounces per unit of output. In the most recent month, 3,130 ounces of the compound were used to make 700 units of the output. When recording the use of materials in production, Raw Materials would be:

A) credited for $129,360.
B) credited for $105,168.
C) debited for $105,168.
D) debited for $129,360.
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18
Compound G92N is used to make Passero Corporation's major product. The standard cost of G92N is $28.60 per ounce and the standard quantity is 2.9 ounces per unit of output. In the most recent month, 2,000 ounces of the raw material were purchased at a cost of $29.50 per ounce. When recording the purchase of materials, Raw Materials would be:

A) credited for $59,000.
B) debited for $57,200.
C) credited for $57,200.
D) debited for $59,000.
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19
Capizzi Corporation has provided the following data concerning its direct labor costs for February: <strong>Capizzi Corporation has provided the following data concerning its direct labor costs for February:   The Labor Efficiency Variance for February would be recorded as a:</strong> A) debit of $45,562. B) credit of $45,562. C) debit of $44,726. D) credit of $44,726.
The Labor Efficiency Variance for February would be recorded as a:

A) debit of $45,562.
B) credit of $45,562.
C) debit of $44,726.
D) credit of $44,726.
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20
When the actual amount of a raw material used in production is less than the standard amount allowed for the actual output, the journal entry would include:

A) Debit to Raw Materials; Credit to Materials Quantity Variance
B) Debit to Work-In-Process; Credit to Materials Quantity Variance
C) Debit to Raw Materials; Debit to Materials Quantity Variance
D) Debit to Work-In-Process; Debit to Materials Quantity Variance
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21
Henifin Corporation has provided the following data concerning its most important raw material, compound K91J: <strong>Henifin Corporation has provided the following data concerning its most important raw material, compound K91J:   The raw material was purchased on account. The Materials Price Variance for January would be recorded as a:</strong> A) Credit of $540 B) Debit of $306 C) Credit of $306 D) Debit of $540 The raw material was purchased on account.
The Materials Price Variance for January would be recorded as a:

A) Credit of $540
B) Debit of $306
C) Credit of $306
D) Debit of $540
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22
Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below: <strong>Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below:   The raw material was purchased on account. The debits to the Raw Materials account for September would total:</strong> A) $41,250 B) $30,942 C) $30,560 D) $42,020 The raw material was purchased on account.
The debits to the Raw Materials account for September would total:

A) $41,250
B) $30,942
C) $30,560
D) $42,020
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23
The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: <strong>The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip:   There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board feet at the total cost of $24,000. Used 12,000 board feet to produce 2,100 Mips. Used 1,700 hours of direct labor time at a total cost of $20,060.  -To record the use of direct materials in production, the general ledger would include what entry to the Materials Quantity Variance account?</strong> A) $3,600 debit B) $3,600 credit C) $900 debit D) $900 credit There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.

-To record the use of direct materials in production, the general ledger would include what entry to the Materials Quantity Variance account?

A) $3,600 debit
B) $3,600 credit
C) $900 debit
D) $900 credit
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24
Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below: <strong>Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below:   The raw material was purchased on account. The Materials Quantity Variance for September would be recorded as a:</strong> A) Debit of $382 B) Credit of $11,078 C) Credit of $382 D) Debit of $11,078 The raw material was purchased on account.
The Materials Quantity Variance for September would be recorded as a:

A) Debit of $382
B) Credit of $11,078
C) Credit of $382
D) Debit of $11,078
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25
Castanada Corporation has provided the following data concerning its direct labor costs for August: <strong>Castanada Corporation has provided the following data concerning its direct labor costs for August:   The journal entry to record the incurrence of direct labor costs in August would include the following for Work in Process:</strong> A) Debit of $222,768 B) Credit of $264,768 C) Credit of $222,768 D) Debit of $264,768
The journal entry to record the incurrence of direct labor costs in August would include the following for Work in Process:

A) Debit of $222,768
B) Credit of $264,768
C) Credit of $222,768
D) Debit of $264,768
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26
Lian Corporation's standard wage rate is $12.10 per direct labor-hour (DLH) and according to the standards, each unit of output requires 7.1 DLHs. In June, 4,500 units were produced, the actual wage rate was $11.90 per DLH, and the actual hours were 35,930 DLHs.
The Labor Efficiency Variance for June would be recorded as a:

A) debit of $47,362.
B) debit of $48,158.
C) credit of $48,158.
D) credit of $47,362.
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27
Castanada Corporation has provided the following data concerning its direct labor costs for August: <strong>Castanada Corporation has provided the following data concerning its direct labor costs for August:   The Labor Rate Variance for August would be recorded as a:</strong> A) Debit of $18,912 B) Credit of $18,912 C) Credit of $17,136 D) Debit of $17,136
The Labor Rate Variance for August would be recorded as a:

A) Debit of $18,912
B) Credit of $18,912
C) Credit of $17,136
D) Debit of $17,136
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28
The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: <strong>The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip:   There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board feet at the total cost of $24,000. Used 12,000 board feet to produce 2,100 Mips. Used 1,700 hours of direct labor time at a total cost of $20,060.  -To record the incurrence of direct labor cost and its use in production, the general ledger would include what entry to the Labor Rate Variance account?</strong> A) $240 credit B) $240 debit C) $340 debit D) $340 credit There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.

-To record the incurrence of direct labor cost and its use in production, the general ledger would include what entry to the Labor Rate Variance account?

A) $240 credit
B) $240 debit
C) $340 debit
D) $340 credit
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29
The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: <strong>The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip:   There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board feet at the total cost of $24,000. Used 12,000 board feet to produce 2,100 Mips. Used 1,700 hours of direct labor time at a total cost of $20,060.  -To record the incurrence of direct labor costs and its use in production, the general ledger would include what entry to the Labor Efficiency Variance account?</strong> A) $480 credit B) $240 debit C) $1,200 debit D) $1,200 credit There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.

-To record the incurrence of direct labor costs and its use in production, the general ledger would include what entry to the Labor Efficiency Variance account?

A) $480 credit
B) $240 debit
C) $1,200 debit
D) $1,200 credit
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30
Castanada Corporation has provided the following data concerning its direct labor costs for August: <strong>Castanada Corporation has provided the following data concerning its direct labor costs for August:   The Labor Efficiency Variance for August would be recorded as a:</strong> A) Credit of $24,864 B) Debit of $24,864 C) Debit of $23,088 D) Credit of $23,088
The Labor Efficiency Variance for August would be recorded as a:

A) Credit of $24,864
B) Debit of $24,864
C) Debit of $23,088
D) Credit of $23,088
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31
Henifin Corporation has provided the following data concerning its most important raw material, compound K91J: <strong>Henifin Corporation has provided the following data concerning its most important raw material, compound K91J:   The raw material was purchased on account. The debits to the Raw Materials account for January would total:</strong> A) $39,330 B) $21,981 C) $19,395 D) $38,790 The raw material was purchased on account.
The debits to the Raw Materials account for January would total:

A) $39,330
B) $21,981
C) $19,395
D) $38,790
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32
Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below: <strong>Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below:   The raw material was purchased on account. The Materials Price Variance for September would be recorded as a:</strong> A) Credit of $567 B) Credit of $770 C) Debit of $567 D) Debit of $770 The raw material was purchased on account.
The Materials Price Variance for September would be recorded as a:

A) Credit of $567
B) Credit of $770
C) Debit of $567
D) Debit of $770
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33
Vernon Mills, Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The standard costs and actual costs per unit of product for a recent period are given below for one of the company's product lines: Vernon Mills, Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The standard costs and actual costs per unit of product for a recent period are given below for one of the company's product lines:   During this period, the company produced 4,800 units of this product. A comparison of standard and actual costs for the period on a total cost basis is given below:   There was no inventory of materials on hand at the beginning of the period. During the period, 21,120 yards of materials were purchased, all of which were used in production. Required: a. For direct materials, compute the price and quantity variances for the period and prepare journal entries to record all activity relating to direct materials for the period. b. For direct labor, compute the rate and efficiency variances and prepare a journal entry to record the incurrence of direct labor cost for the period. c. For variable overhead, compute the rate and efficiency variances.
During this period, the company produced 4,800 units of this product. A comparison of standard and actual costs for the period on a total cost basis is given below: Vernon Mills, Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The standard costs and actual costs per unit of product for a recent period are given below for one of the company's product lines:   During this period, the company produced 4,800 units of this product. A comparison of standard and actual costs for the period on a total cost basis is given below:   There was no inventory of materials on hand at the beginning of the period. During the period, 21,120 yards of materials were purchased, all of which were used in production. Required: a. For direct materials, compute the price and quantity variances for the period and prepare journal entries to record all activity relating to direct materials for the period. b. For direct labor, compute the rate and efficiency variances and prepare a journal entry to record the incurrence of direct labor cost for the period. c. For variable overhead, compute the rate and efficiency variances.
There was no inventory of materials on hand at the beginning of the period. During the period, 21,120 yards of materials were purchased, all of which were used in production.
Required:
a. For direct materials, compute the price and quantity variances for the period and prepare journal entries to record all activity relating to direct materials for the period.
b. For direct labor, compute the rate and efficiency variances and prepare a journal entry to record the incurrence of direct labor cost for the period.
c. For variable overhead, compute the rate and efficiency variances.
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34
Lian Corporation's standard wage rate is $12.10 per direct labor-hour (DLH) and according to the standards, each unit of output requires 7.1 DLHs. In June, 4,500 units were produced, the actual wage rate was $11.90 per DLH, and the actual hours were 35,930 DLHs.
The Labor Rate Variance for June would be recorded as a:

A) credit of $6,390.
B) credit of $7,186.
C) debit of $7,186.
D) debit of $6,390.
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35
Henifin Corporation has provided the following data concerning its most important raw material, compound K91J: <strong>Henifin Corporation has provided the following data concerning its most important raw material, compound K91J:   The raw material was purchased on account. The Materials Quantity Variance for January would be recorded as a:</strong> A) Credit of $2,586 B) Credit of $16,809 C) Debit of $16,809 D) Debit of $2,586 The raw material was purchased on account.
The Materials Quantity Variance for January would be recorded as a:

A) Credit of $2,586
B) Credit of $16,809
C) Debit of $16,809
D) Debit of $2,586
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36
Lian Corporation's standard wage rate is $12.10 per direct labor-hour (DLH) and according to the standards, each unit of output requires 7.1 DLHs. In June, 4,500 units were produced, the actual wage rate was $11.90 per DLH, and the actual hours were 35,930 DLHs.
In the journal entry to record the incurrence of direct labor costs in June, the Work in Process entry would consist of a:

A) debit of $427,567.
B) credit of $427,567.
C) debit of $386,595.
D) credit of $386,595.
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37
Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below: <strong>Compound C90N is a raw material used to make Mosbarger Corporation's major product. The standard cost of compound C90N is $38.20 per ounce and the standard quantity is 8.0 ounces per unit of output. Data concerning the compound for September appear below:   The raw material was purchased on account. The credits to the Raw Materials account for September would total:</strong> A) $30,560 B) $41,250 C) $30,942 D) $42,020 The raw material was purchased on account.
The credits to the Raw Materials account for September would total:

A) $30,560
B) $41,250
C) $30,942
D) $42,020
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38
The following standards have been established for a raw material used in the production of product N70:
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39
Henifin Corporation has provided the following data concerning its most important raw material, compound K91J: <strong>Henifin Corporation has provided the following data concerning its most important raw material, compound K91J:   The raw material was purchased on account. The credits to the Raw Materials account for January would total:</strong> A) $21,981 B) $19,395 C) $38,790 D) $39,330 The raw material was purchased on account.
The credits to the Raw Materials account for January would total:

A) $21,981
B) $19,395
C) $38,790
D) $39,330
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40
The standards for product C78 call for 2.0 pounds of a raw material that costs $13.30 per pound. Last month, 5,900 pounds of the raw material were purchased for $74,045. The actual output of the month was 2,640 units of product C78. A total of 5,300 pounds of the raw material were used to produce this output.
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
c. Prepare journal entries to record the purchase and use of the raw material during the month. (All raw materials are purchased on account.)
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41
Compound A39A is used by Ashline Corporation to make one of its products. The standard cost of compound A39A is $32.00 per ounce and the standard quantity is 8.5 per unit of output. Data concerning the compound in the most recent month appear below: Compound A39A is used by Ashline Corporation to make one of its products. The standard cost of compound A39A is $32.00 per ounce and the standard quantity is 8.5 per unit of output. Data concerning the compound in the most recent month appear below:   The raw material was purchased on account. Required: a. Record the purchase of the raw material in a journal entry. b. Record the use of the raw material in production in a journal entry.
The raw material was purchased on account.
Required:
a. Record the purchase of the raw material in a journal entry.
b. Record the use of the raw material in production in a journal entry.
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42
Schinkel Corporation has provided the following data concerning its most important raw material, compound X87C: Schinkel Corporation has provided the following data concerning its most important raw material, compound X87C:   The raw material was purchased on account. Required: a. Record the purchase of the raw material in a journal entry. b. Record the use of the raw material in production in a journal entry.
The raw material was purchased on account.
Required:
a. Record the purchase of the raw material in a journal entry.
b. Record the use of the raw material in production in a journal entry.
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43
The following direct labor standards have been established for product K62G:
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44
The direct labor standards at Lounsbury Corporation are $12.50 per direct labor-hour (DLH) and 6.1 DLHs per unit of output. In November, 4,700 units were produced, the actual wage rate was $12.50 per DLH, and the actual hours were 29,570 DLHs.
Required:
Prepare the journal entry to record the incurrence of direct labor costs.
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45
The standards for product V33I specify 8.0 direct labor-hours per unit at $11.20 per direct labor-hour. Last month 760 units of product V33I were produced using 6,500 direct labor-hours at a total direct labor wage cost of $75,075.
Required:
a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?
c. Prepare a journal entry to record direct labor costs during the month, including the direct labor variances.
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46
Martorella Corporation has provided the following data concerning its direct labor costs for October: Martorella Corporation has provided the following data concerning its direct labor costs for October:   Required: Prepare the journal entry to record the incurrence of direct labor costs.
Required:
Prepare the journal entry to record the incurrence of direct labor costs.
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