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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
![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?
$1,500 credit.
A)
$1,500 debit.
B)
$6,000 credit.
$6,000 debit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa34e851f-4612-4e29-acb1-b1c1a5e68e4c%2F2c7f9691-2a32-4383-867d-1bfd1268d6fd%2Fy4f55d_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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?
$1,500 credit.
A)
$1,500 debit.
B)
$6,000 credit.
$6,000 debit.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education