(Appendix 10B) The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip: Standard Quantity or Standard Cost per Direct Materials Direct Labour Hours 6 board metre 0.8 hours Mip $9.00 $9.60 There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board metres at the total cost of $24,000. Used 12,000 board metres to produce 2,100 Mips. Used 1,700 hours of direct labour time at a total cost of $20,060. (Appendix 10B) To record the use of direct materials in production, the general ledger would include what entry to the Materials Quantity Variance account? $900 debit. $900 credit. $3,600 debit. $3,600 credit.
(Appendix 10B) The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip: Standard Quantity or Standard Cost per Direct Materials Direct Labour Hours 6 board metre 0.8 hours Mip $9.00 $9.60 There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board metres at the total cost of $24,000. Used 12,000 board metres to produce 2,100 Mips. Used 1,700 hours of direct labour time at a total cost of $20,060. (Appendix 10B) To record the use of direct materials in production, the general ledger would include what entry to the Materials Quantity Variance account? $900 debit. $900 credit. $3,600 debit. $3,600 credit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
jlp.3
Transcribed Image Text:(Appendix 10B) The Dexon Company makes and sells a single product, called a Mip,
and employs a standard costing system. The following standards have been
established for one unit of Mip:
Standard Quantity or Standard Cost per
Direct Materials
Direct Labour
Hours
6 board metre
0.8 hours
Mip
$9.00
$9.60
There were no inventories of any kind on August 1. During August, the following
events occurred:
Purchased 15,000 board metres at the total cost of $24,000.
Used 12,000 board metres to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $20,060.
D
(Appendix 10B) To record the use of direct materials in production, the general
ledger would include what entry to the Materials Quantity Variance account?
$900 debit.
$900 credit.
$3,600 debit.
$3,600 credit.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education