Concept explainers
Lopez Company uses a
Instructions
Answer the following questions.
(a) Materials Price Variance shows a $2,000 unfavorable balance. Accounts Payable shows $138,000 of raw materials purchases. What was the amount debited to Raw Materials Inventory for raw materials purchased?
(b) Materials Ouantity Variance shows a $3,000 favorable balance. Raw Materials Inventory shows a zero balance. What was the amount debited to Work in Process Inventory for direct materials used?
(c) Labor Price Variance shows a $1,500 favorable balance. Factory Labor shows a debit of $145,000 for wages incurred. What was the amount credited to Factory Wages Payable?
(d) Factory Labor shows a credit of $145,000 for direct labor used. Labor Ouantity Variance shows a $900 favorable balance. What was the amount debited to Work in Process for direct labor used?
(e) Overhead applied to Work in Process totaled $165,000. If the total overhead variance was $1,200 favorable, what was the amount of overhead costs debited to Manufacturing Overhead?
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