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 Hours 6 board metre 0.8 hours Standard Cost per Mip $9.00 $9.60 Direct Materials Direct Labour 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. 6. 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.

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 Hours 6 board metre 0.8 hours Standard Cost per Mip $9.00 $9.60 Direct Materials Direct Labour 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. 6. 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Question During December, Wards Company’s actual costs incurred in the production of 1,000 units were as follows:Direct labor: $34,500 ($5 per hour)Direct material: $16,000 ($2 per pound)The standards for one unit of Wards Company’s product are as follows:Direct labor: Quantity, 0.5 hour per unit Quantity, Rate, $4.5 per hour Price, Direct material: 0.75 pounds per unit, $1.5 per poundRequired:1. Compute the direct-material price and quantity variances. Indicate whether each variance is favorable or unfavorable. Show your calculations. 2. Compute the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. Show your calculations.
(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 Hours Standard Cost per Mip Direct Materials 6 board metre $9.00 Direct Labour 0.8 hours $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? Question 9 options: $900 debit. $900 credit. $3,600 debit. $3,600 credit.
The following are standard costs related to a product of Jacobs, SRL: Inputs: Unit of Input Units per item Price or rate Direct Materials: square feet 80 $22/square foot Direct Labor: direct labor hours 24 $38/direct labor hour Variable Overhead: direct labor hours $49/direct labor hour The company applies variable overhead on the basis of direct labor hours. In April, the following results were reported: Actual output: 506 items Raw Materials used: 45,684 square feet Raw Material purchased: 42,335 square feet Actual direct labor hours: 14,168 hours Actual cost of raw materials purchased: $973,705 Actual direct labor cost: $609,224 Actual variable overhead cost: $665,896 The direct material purchases variance is computed when the materials are purchased. Determine each of the following variances and whether they are favorable or unfavorable: Part 1: Direct Material quantity variance: 114,488 Unfavorable 114,488 Favorable 83,145 Favorable 83, 145…
Please do not give image format
TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one unit of product. Standard Quantity Standard Price Standard Cost Direct Materials 8 pounds $ 3.60 per pound $ 28.80 Direct Labor 0.25 hour $ 11.60 per hour 2.90 $ 31.70 During November, TaskMaster purchased 169,000 pounds of direct materials at a total cost of $625,300. The total factory wages for November were $60,000, 90% of which were for direct labor. TaskMaster manufactured 19,900 units of product during November using 149,250 pounds of direct materials and 5,180 direct labor hours. Is the direct materials price variance favorable or unfavorable?
Exercise Al-9 Payment of payroll deductions LO3 Paradise Hills Berry Farm has 21 employees who are paid biweekly. The payroll register showed the following payroll deductions for the pay period ending March 23, 2021. Gross Pay EI Premium Income Taxes 78,950.00 1,310.57 10,889.00 CPP 3,768.09 Medical Ins. United Way 1,475.00 1,644.00 Required: Prepare a journal entry to record payment by the employer to the Receiver General for Canada on April 15. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) View transaction list Journal entry worksheet 1 Record the remittance to the Receiver General for Canada. Note: Enter debits before credits. Date April 15 General Journal + Debit Credit View general journal Record entry Clear entry
Haresh
Braxton Manufacturing completed 9,000 units with the following costs: Direct Material Costs $12,600 Direct Labor Costs $44,100 Allocated Manufacturing Overhead - $6,300 If 8,500 of the units were sold, what is the journal entry for cost of the goods sold? - OA. Cost of Goods Sold Finished Goods Inventory OB. Finished Goods Inventory Cost of Goods Sold OC. Cost of Goods Sold Finished Goods Inventory OD. Finished Goods Inventory Cost of Goods Sold 63,000 59,500 59,500 63,000 63,000 59,500 59,500 63,000
a) During June, Spencer Company’s material purchases amounted to 6,000 pounds at a price of $7.30 per pound. Actual costs incurred in the production of 2,000 units were as follows:Direct Labour: $116,745 ($18.10 per hour)Direct Materials: $ 30,660 ($ 7.30 per pound)The standards for one unit of Spencer Company’s product are as follows:Direct Labour Direct MaterialQuantity, 3 hours per unit Quantity, 2 pounds per unitRate, $18 per hour Price, $7 per poundCompute the direct-material price and quantity variances and the direct-labour rate and efficiency variances. Indicate whether each variance is favourable or unfavourable
Sharp Company manufactures a product for which the following standards have been set: Standard Standard Quantity Standard Price or or Hours Rate Cost $15 3 feet hours $5 per foot ? per hour ? ? Direct materials Direct labor During March, the company purchased direct materials at a cost of $54,630, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $47,000. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month's production. c. Compute the standard hours allowed per unit of product. $ 2,400 U $ 3,300 U $…
rane makes Halloween costumes. The company incurred the following total costs to produce 30,700 costumes. Direct materials $235,000 Direct labor 164,000 Variable overhead 21,590 Fixed overhead 119,730 (a) Under the absorption costing method, what is the average unit product cost? Using this method, how much product cost would be recorded on the income statement if 21,900 units were sold? (Round per unit to 3 decimal places, e.g. 15.256 and product cost to 0 decimal places, e.g. 5,275.) Average unit product cost $enter a dollar amount rounded to 2 decimal places Product cost $enter a dollar amount rounded to 0 decimal places (b) Under the variable costing method, what is the average unit product cost? Using this method, how much product cost would be recorded on the income statement if 21,900 units were sold? (Round per unit to 3 decimal places, e.g. 15.256 and product cost to 0 decimal places, e.g. 5,275.) Average unit product cost…
The following standard costs per unit, of one product, have been taken from the records of Bahrain Company. Direct materials 5 kgs at $3 per kg Direct labor 2.5 hours at $10 per hour Actual data for last month: Units produced: 12,000 Direct materials used: 35,000 kgs Direct material price: $4 per kg Direct labor hours: 22,000 Direct labor rate per hour: $9 Direct materials purchased: 100,000 kgs Required: (n) Compute the price and efficiency variances for direct materials and direct labor. Direct material price variance to be calculated at the time of purchase. (6) Prepare the journal entries to record the price and efficiency variances for direct materials and direct labor. For the toolbar, press ALT+F10 (PC) or ALT+FN-F10 (Mac).