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What is the journal entry to record material purchases

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Roberts Company uses a standard costing system. The following information pertains to direct materials for the month;of July;Standard price per lb. $18.00;Actual purchase price per lb. $16.50;Quantity purchased 3,100 lbs.;Quantity used 2,950 lbs.;Standard quantity allowed for actual output 3,000 lbs.;Actual output 1,000 units;Roberts Company reports its material price variances at the time of purchase.;What is the journal entry to record material purchases?;Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct;labor for the 100 units of Product AA are as follows;Materials: Standard Actual;Standard: 200 pounds at $3.00 per pound $600;Actual: 220 pounds at $2.85 per pound $627;Direct labor;Standard: 400 hours at $15.00 per hour $6,000;Actual: 368 hours at $16.50 per hour $6,072;What is the journal entry to record labor variances?;Harry Company's standard variable manufacturing overhead rate is $6 per direct labor hour, and each unit requires 2;standard direct labor hours. During March, Harry recorded 6,000 actual direct labor hours, $37,000 actual variable;manufacturing overhead costs, and 2,900 units of product manufactured.;What are the flexible budget variance for variable manufacturing overhead (FlexVOH) and the variable manufacturing;overhead efficiency variance (VOH-Eff), respectively, for March?;Crawford Company's standard fixed manufacturing overhead cost is $6 per direct labor hour based on budgeted fixed;manufacturing costs of $600,000. The standard allows one direct labor hour per unit. During 2012, Crawford produced;110,000 units of product, incurred $630,000 of fixed manufacturing overhead costs, and recorded 212,000 actual hours of;direct labor.;What is Crawford's fixed manufacturing overhead spending variance (FOH Spending) and production volume variance;(PVV) for 2012, respectively?;Which of the following is not an inventoriable cost under variable costing?;A. direct materials B. variable selling and administrative expenses;C. variable manufacturing overhead D. all of these are inventoriable costs;Heath Company;DATA SUMMARY;Units 2012 2013;Beginning Inventory 400 600;Price $ 90 $ 90;Sold 1000 1900;Actual Production 1200 1700;Budgeted Production 1500 1500;Unit Variable Costs;Manufacturing $ 30 $ 30;Selling and Administrative $ 5 $ 5;Fixed Costs;Manufacturing $ 30,000 $ 30,000;Selling and Administrative $ 10,000 $ 10,000;Ending Inventory 600 400;The Production Volume Variance for 2012 is;A. $4,000 F B. $6,000 U C. $4,000 U D. $6,000 F;Fixed manufacturing overhead appears on the absorption costing income statement as a;A. fixed expense.;B. part of cost of goods sold.;C. production volume variance.;D. part of cost of goods sold and as a production volume variance;Heath Company;DATA SUMMARY;Units 2012 2013;Beginning Inventory 400 600;Price $ 90 $ 90;Sold 1000 1900;Actual Production 1200 1700;Budgeted Production 1500 1500;Unit Variable Costs;Manufacturing $ 30 $ 30;Selling and Administrative $ 5 $ 5;Fixed Costs;Manufacturing $ 30,000 $ 30,000;Selling and Administrative $ 10,000 $ 10,000;Ending Inventory 600 400;Gross Margin (GM) and contribution margin (CM) for 2013 will be respectively;Heath Company;DATA SUMMARY;Units 2012 2013;Beginning Inventory 400 600;Price $ 90 $ 90;Sold 1000 1900;Actual Production 1200 1700;Budgeted Production 1500 1500;Unit Variable Costs;Manufacturing $ 30 $ 30;Selling and Administrative $ 5 $ 5;Fixed Costs;Manufacturing $ 30,000 $ 30,000;Selling and Administrative $ 10,000 $ 10,000;Ending Inventory 600 400;The difference in operating income for 2012 between absorption and variable costing will be;A. $8,000 more under variable costing. B. $8,000 more under absorption costing.;C. $4,000 more under absorption costing. D. $4,000 more under variable costing.;Variable costing;A. expenses administrative costs as cost of goods sold;B. treats direct manufacturing costs as a product cost;C. includes fixed manufacturing overhead as an inventoriable cost;D. is required for external reporting to shareholders;Beginning inventory was 15,000 units and ending inventory was 10,000 units. The fixed manufacturing overhead was;$8 per unit. How will absorption cost net income differ from variable cost net income?;A. absorption cost net income will be $80,000 higher.;B. variable cost net income will be $80,000 higher.;C. absorption cost net income will be $40,000 higher.;D. variable cost net income will be $40,000 higher.;Standard cost variances may be prorated in order to;A. simplify the accounting process.;B. defer income taxes from the current period to a future period.;C. make inventory valuation more representative of "actual" costs incurred to make the products.;D. all of these responses support proration.;When actual volume is less than expected volume, the production volume variance is;A. favorable. B. over allocated C. unfavorable D. indeterminable

 

Paper#20512 | Written in 18-Jul-2015

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