To prepare a journal entry to record favorable direct material quantity variances,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.

The correct answer is:A. always credits. Explanation:A favorable direct material quantity variance…

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

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 10DQ: If variances are recorded in the accounts at the time the manufacturing costs are incurred, what...

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Similar questions

If variances are recorded in the accounts at the time the manufacturing costs are incurred, what does a debit balance in Direct Materials Price Variance represent?
What is the most important purpose of the cost of production report?
Under Standard Costing System, direct material price variance shall be appropriately computed using A. Actual direct materials usedB. Actual direct materials purchasedC. Actual direct materials wastedD. Actual direct materials converted to work in process
4. Compute the Material Price variance 5. Compute the Material Quantity variance 6. Compute the Total Labor variance 7. Compute the Labor Price variance 8. Compute the Labor Quantity variance 9. Compute the Total Manufacturing Overhead variance 10. Which variance(s) would be the responsibility of the Production Manager? 11. Which variance(s) would be the responsibility of the Purchasing Manager? Show all calculations for each item step-by-step
In a standard cost system, the cost of completed units transferred from Work in Process Inventory to Finished Goods Inventory is recorded at: Multiple Choice Actual cost. Standard cost minus the variance from actual cost. Standard cost. Standard cost plus the variance from actual cost.
Please do not give solution in image format ?
Computing and journalizing standard cost variances McKnight manufactures coffee mugs that it sells to other companies for customizing with their own logos. McKnight prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,800 coffee mugs per month: Direct Materials (0.2 lbs. @ $0.25 per Ib.) $ 0.05 Direct Labor (3 minutes @ $0.11 per minute) 0.33 Manufacturing Overhead: Variable (3 minutes @ $0.06 per minute) $ 0.18 Fixed (3 minutes @ $0.15 per minute) 0.45 0.63 Total Cost Per Coffee Mug $ 1.01 Actual cost and production information for July 2020 follow: а. Actual production and sales were 62,500 coffee mugs. b. Actual direct materials usage was 10,000 Ibs. at an actual cost of $0.17 per Ib. Actual direct labor usage of 198,000 minutes at a cost of $25,740. d. Actual overhead cost was $8,500 variable and $32,100 fixed. e. Selling and administrative costs were $110,000. C.
a. Compute the direct material price and efficiency variances. b. (Appendix) Prepare the journal entries to record the purchase and use of the direct materials using standard costing. Complete this question by entering your answers in the tabs below. Required A Required B (Appendix) Prepare the journal entries to record the purchase and use of the direct materials using standard costing. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A Record the purchase and use of the direct materials using standard costing. Note: Enter debits before credits. Event 1 General Journal Debit Credit
Which of the following statements Is true? Multiple Choice The material quantity variance is recorded when overhead is applied to production. The material price and the material quantity variances are recorded at the same time., The materials quantity variance is recorded when materials are used in production. The materials quantity variance is recorded when materials are purchased.
Both the equivalent units schedules and the physical flow are prerequisites to calculating the a.unit cost. b.cost reconciliation. c.weighted average. d.operating costs.
Under the 3 variance method for analyzing overhead, the difference between the actual factory overhead and factory overhead applied to production is the ___________ variance A. controllable B. efficiency C. net overhead D. spending
Cost information is required for: Select one: O A. Pricing decisions O B. Valuation of inventories O C. Preparation of cost budgets O D. All of the above.

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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.