The Od Company makes and sells a single product called a Kitt. Od employs a standard costing system. Each Kitt has a standard cost of 5 pounds of material at $12 per pound and 0.9 direct labor hours at $15 per hour. There were no inventories of any kind on June 1. During June, the following events occurred: - Purchased 17,000 pounds of material at a total cost of $190,000. - Used 15,000 pounds of material to produce 2,400 Kitts. - Used 1,900 hours of direct labor time at a total cost of $38,000. To record the use of direct materials in production, the general ledger would include what kind of entry to the Direct Materials Quantity Variance Account? a) $46,000 debit. b) $60,000 credit. c) $60,000 debit. d) $36,000 debit.

The Od Company makes and sells a single product called a Kitt. Od employs a standard costing system. Each Kitt has a standard cost of 5 pounds of material at $12 per pound and 0.9 direct labor hours at $15 per hour. There were no inventories of any kind on June 1. During June, the following events occurred: - Purchased 17,000 pounds of material at a total cost of $190,000. - Used 15,000 pounds of material to produce 2,400 Kitts. - Used 1,900 hours of direct labor time at a total cost of $38,000. To record the use of direct materials in production, the general ledger would include what kind of entry to the Direct Materials Quantity Variance Account? a) $46,000 debit. b) $60,000 credit. c) $60,000 debit. d) $36,000 debit.

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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