Question Content Area A company records its inventory purchases at standard cost but also records purchase price variances. The company purchased 5,000 widgets at $8.00 each, and the standard cost for the widgets is $7.60. Which of the following would be included in the journal entry? a. debit Accounts Payable, $38,000 b. credit Direct Materials Price Variance, $2,000 c. debit Accounts Payable, $2,000 d. debit Direct Materials Price Variance, $2,000
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Question Content Area
A company records its inventory purchases at
standard cost but also records purchase price variances. The company purchased 5,000 widgets at $8.00 each, and the standard cost for the widgets is $7.60. Which of the following would be included in thejournal entry ?a. debit Accounts Payable, $38,000b. credit Direct Materials Price Variance, $2,000c. debit Accounts Payable, $2,000d. debit Direct Materials Price Variance, $2,000
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- Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): Smith Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units. Smith Industries paid $39,370 for the 15,500 pounds of material. A. What was the direct materials price variance for July? B. What was the direct materials quantity variance for July? C. What is the total direct materials cost variance? D. If Smith Industries used 15,750 pounds to make the baskets, what would be the direct materials quantity variance?Question Content Area A company records its inventory purchases at standard cost but also records purchase price variances. The company purchased 5,000 widgets at $8.00 each, and the standard cost for the widgets is $7.60. Which of the following would be included in the journal entry?If a company records inventory purchases at standard cost and also records purchase price variances, prepare the journal entry for a purchase of widgets that were bought at $7.45 per unit and have a standard cost of $7.15. The total amount owed to the vendor for this purchase is $33,525.
- DL variances; journal entriesCalista & Lane, CPAs, set the following standard for its inventory audit of Triumph Co.: 560 hours at an average hourly rate of $250. The firm actually worked 528 hours during the inventory audit process. The total labor variance for the audit was $5,600 unfavorable.a. Compute the total actual payroll. $Answerb. Compute the labor efficiency variance.Note: Do not use a negative sign with your answer.Labor efficiency variance $Answer AnswerFavorableUnfavorableNeither favorable or unfavorablec. Compute the labor rate variance.Note: Do not use a negative sign with your answer.Labor rate variance $Answer AnswerFavorableUnfavorableNeither favorable or unfavorabled. Prepare the entry to assign labor costs to inventory, record the labor variances, and accrue payroll costs.Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Account Debit Credit AnswerAccounts PayableCost of Good SoldLabor Efficiency…Riza Company uses a standard cost system. Information for raw materials for Product DEF for the month of August follows:Standard price per pound of raw materials $1.60Actual purchase price per pound of raw materials $1.55Actual quantity of raw materials purchased 2,000 poundsActual quantity of raw materials used 1,900 poundsStandard quantity allowed for actual production 1,800 poundsQuestion: What is the materials purchase price variance? (label whether favorable or unfavorable; no dollar sign and comma)Prepare an income statement through gross profit for Bellingham Company for the month ending March 31. For those boxes in which you must enter subtractive or negative numbers use a minus sign. If an amount box does not require an entry, leave it blank: Income statement with variances The following data is provided for Bellingham Company: DATA Standard pounds per unit 2.5 Standard price per pound $3.90 Actual quantity of pounds used 34,000 Units produced (sold) 19,000 Actual price per pound $4.15 Standard direct labor hours per unit 3.0 Standard hourly rate $19.55 Actual labor hours used 63,200 Actual hourly rate $19.40 Standard variable overhead cost per unit per direct labor hour $0.80 Actual variable factory overhead $36,790 Standard fixed overhead cost per unit per direct labor hour $1.05 Practical capacity 45,000 Selling price $168 Please avoid solution in handwritten thank you
- Situation Fenimore Manufacturing Company uses the average cost method. It has followed a policy of expensing all its manufacturing cost variances. It is considering a change in its policy that will involve allocating them between cost of goods sold and inventory. Fenimore’s president has asked you which of these alternative policies is consistent with GAAP. Directions Research the related generally accepted accounting principles and prepare a short memo to the president. Cite your references and applicable paragraph numbers.Third: Raw materials and Purchases: Quantity needed from material "M": "E" 17 kg. "F" 13 kg. "G" 11 kg. Quantity needed from material "N": "E" 16 "F" 20 kg. "G" 18 kg. The direct hours needed to produce one unit is 18 hours for "E", and 20 hours for "F", and 22 hours for "G". Rate per hour is 5 EGP for three The price of material is 8 EGP for "M" and 11 EGP for "N". Fourth: Inventory raw materials: Beginning period inventory "M" 600 kg. "N" 800 kg. Ending period inventory 1600 900 kg. Fifth: Indirect overhead cost: (The numbers are in thousands of pounds) -Heat and water 50,000 EGP involve (60% V). -Machine maintenance 120,000, if you know rate of maintenance = EGP 0.08(Number of labors hours). Wages of service workers 8000 EGP (40%F). Factory oil & gas 5000 EGP (90%V). - Power 40,000 EGP. Depreciation 15500 - Insurance on plants 10700 EGP. -Supervision Cost 13000 EGP. Sixth: Cost of marketing and administration:…Sexson Corporation uses a standard cost system. The following information pertains to direct materials for the month of May. Standard price per lb. $12.00 Actual purchase price per lb. $11.00 Quantity purchased 6,200 lbs. Quantity used 5,900 lbs. Standard quantity allowed for actual output 6,000 lbs. Actual output 1,000 units Sexson reports its material price variances at the time of purchase. What is the standard quantity of direct materials per unit for Sexson Corporation? Group of answer choices 6.00 lbs 7.00 lbs 6.50 lbs 6.20 lbs
- A firm expected to spend $6 per hour for three hours of direct labor to manufacture one unit of inventory. The firm spent $5 per hour for four hours to make one unit of inventory. The unit direct labor price variance was Select one: a. $4 Favorable. b. $4 Unfavorable. c. $2 Unfavorable. d. $2 Favorable.Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. Smith Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units. Smith Industries paid $39,370 for the 15,500 pounds of material. Complete the following table of variances and their conditions: Variance Variance Amount Favorable (F) or Unfavorable (U) Material Price Material Quantity Total DM Cost VarianceIn November, DayTime Publishing Company’s costs and quantities of paper consumed in manufacturing its annual collegiate calendar were as follows: Actual unit purchase price $0.13 per page Standard unit price $0.14 per page Standard quantity for good production 39,160 pages Actual quantity purchased during November 46,000 pages Actual quantity used in November 40,000 pages a. Calculate the total cost of purchases for November. $5,980 b. Compute the material price variance (based on quantity purchased). Note: Do not use a negative sign with your answer.Note: Round your final answers to the nearest whole dollar. $______ Favorable c. Calculate the material quantity variance. Note: Do not use a negative sign with your answer.Note: Round your final answers to the nearest whole dollar. $______ Unfavorable