Financial Account questions To prepare a journal entry to record favorable direct material quantityvariances, the direct material quantity variances areA. always credits.B. always debits.C. debited to the Work-in-Process Inventory account.D. debited to the Raw Material Inventory account.

Correct Answer:A. always credits. Explanation:A Direct Material Quantity Variance measures the…

Answered: To prepare a journal entry to record…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 7DQ: What is the most important purpose of the cost of production report?

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Similar questions

A debit balance in Overhead Control:a. indicates applied overhead exceeds actual overhead. b. gives the total actual overhead costs at a given point in time. c. indicates actual overhead costs have entered the work-in-process inventory account. d. equals the total applied overhead at a given point in time.
Allocated manufacturing overhead is always recorded with a debit to work-in-process inventory. with a credit to manufacturing overhead. with a debit to raw materials inventory. Both A & B are correct.
Which of the following would be included in the journa record the requisition of indirect materials? O a. Debit to Work in process inventory O b. Debit to Finished Goods Inventory Oc. Debit to Manufacturing Overhead O d. Debit to Materials inventory
Which of the following would be included in the journal entry to record the requisition of indirect materials? a. Debit to Manufacturing Overhead b. Debit to Materials inventory c. Debit to Finished Goods Inventory d. Debit to Work in process inventory
The appropriate cost accounting system to use when inventory items are produced on an assembly line is a. perpetual method. b. job-order costing. c. weighted average. d. process costing.
Which of the following accounts would be debited in the journal entry to record the issuance of direct materials? O A. Cost of Goods Sold O B. Finished Goods Inventory OC. Raw Materials Inventory O D. Work-in-Process Inventory
Under a standard cost system, when recording the use of direct materials in the production process, the debit to Work-in-Process Inventory is A. actual quantity times actual cost per unit of direct materials B. actual quantity times standard cost per unit of direct materials C. standard quantity for actual production times actual cost per unit of direct materials D. standard quantity for actual production times standard cost per unit of direct materials
The entry to record the cost of raw materials placed in production is: a. Dr Work-In-Process; Cr Raw Materials Inventory b. Dr Raw Materials Inventory; Cr Accounts Payable or Cash c. Dr Manufacturing Overhead; Cr Raw Material Inventory d. Dr Work-In-Process; Cr Accounts Payable or Cash
What is the most important purpose of the cost of production report?
Accumulating costs means that a. costs must be summed and entered on the income statement. b. each cost must be linked to some cost object. c. costs must be measured and tracked. d. costs must be allocated to units of production. e. costs have expired and must be transferred from the balance sheet to the income statement.
For each cost pool, identify an appropriate cost driver. A. order department B. accounts receivable processing C. catering D. raw material inventory
What is the predetermined overhead rate, and when is it typically estimated?

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To prepare a journal entry to record favorable direct material quantity variances, the direct material quantity variances are A. always credits. B. always debits. C. debited to the Work-in-Process Inventory account. D. debited to the Raw Material Inventory account.