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Exam 28: Journal Entries to Record Variances

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Question 1

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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:

A) $41,250
B) $30,942
C) $30,560
D) $42,020

E) B) and C)
F) All of the above

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Question 2

Multiple Choice

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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:

A) Credit of $2,586
B) Credit of $16,809
C) Debit of $16,809
D) Debit of $2,586

E) C) and D)
F) All of the above

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D

Question 3

Multiple Choice

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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:

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:

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?

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:

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.

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:

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?

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:

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:

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:

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:

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:

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:

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:

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:

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?

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:

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: