Cello Industries commenced operations in January and uses a standard cost accounting system.During the month of January, Cello purchased and used 32,000 pounds of raw materials at a costof $2.80 per pound. The standard price is $3.00 per pound. Cello completed 15,500 units offinished goods during January and the standard quantity of raw materials per unit is 2.0 pounds..Which of the following journal entries properly records the purchase and use of raw materials inJanuary?A.B.C.D.WIP inventoryDr. $93,000Dr. $93,000Dr. $92,600Dr. $92,600O Choice AO Choice BO Choice CO Choice DO None of the abovePrice varianceCr. $6,400Cr. $6,200Dr. $6,200Dr. $6,400Quantity varianceDr. $3,000Dr. $2,800Cr. $2,800Cr. $3,000Accounts payableCr. $89,600Cr. $89,600Cr. $96,000Cr. $96,000

The variance is the difference between the actual and standard cost of production. The variance can…

o Industries commenced operations in January and uses a standard cost accounting system ing the month of January, Cello purchased and used 32,000 pounds of raw materials at a ce 2.80 per pound. The standard price is $3.00 per pound. Cello completed 15,500 units of hed goods during January and the standard quantity of raw materials per unit is 2.0 pounds ich of the following journal entries properly records the purchase and use of raw materials uary? WIP inventory Dr. $93,000 Dr. $93,000 Dr. $92,600 Dr. $92,600 Choice A Choice B Choice C hoice D one of the above Price variance Cr. $6,400 Cr. $6,200 Dr. $6,200 Dr. $6,400 Quantity variance Dr. $3,000 Dr. $2,800 Cr. $2,800 Cr. $3,000 Accounts payable Cr. $89,600 Cr. $89,600 Cr. $96,000 Cr. $96,000

o Industries commenced operations in January and uses a standard cost accounting system ing the month of January, Cello purchased and used 32,000 pounds of raw materials at a ce 2.80 per pound. The standard price is $3.00 per pound. Cello completed 15,500 units of hed goods during January and the standard quantity of raw materials per unit is 2.0 pounds ich of the following journal entries properly records the purchase and use of raw materials uary? WIP inventory Dr. $93,000 Dr. $93,000 Dr. $92,600 Dr. $92,600 Choice A Choice B Choice C hoice D one of the above Price variance Cr. $6,400 Cr. $6,200 Dr. $6,200 Dr. $6,400 Quantity variance Dr. $3,000 Dr. $2,800 Cr. $2,800 Cr. $3,000 Accounts payable Cr. $89,600 Cr. $89,600 Cr. $96,000 Cr. $96,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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karan subject-Accounting
Ashavinbhai
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