If a company uses standard costs to record its inventory in the general ledger, what would...
If a company uses standard costs to record its inventory in the general ledger, what would the journal entry be for a purchase of direct materials with a favorable price variance?
a.Debit Materials (at standard) and credit Direct Materials Price Variance and Accounts Payable
b.Debit Materials (at standard) and Direct Materials Price Variance and credit Accounts Payable
c.Debit Materials (actual) and credit Accounts Payable
d.Debit Materials (at standard) and credit Accounts Payable
Homework Answers
Answer : A = Debit Materials ( at standard ) and credit Direct Materials Price Variance and Accounts Payable.
>> Direct material price variance is favorable means standard price is higher than actual price, So decrease standard cost to the extent of direct price material variance, we will credit Direct Material Price Variance.
Add Answer to:
If a company uses standard costs to record its inventory in the
general ledger, what would...
BBC Company purchased a piece of land with a fair value of $120,000 for $100,000 cash....
BBC Company purchased a piece of land with a fair value of $120,000 for $100,000 cash. What is the journal entry to record the land purchase? a.Debit Land and credit Cash for $100,000 b.Debit Land for $120,000, credit Gain for $20,000, and credit Cash for $100,000 c.Debit Land and credit Cash for $120,000 d.Debit Land for $100,000, debit Gain for $20,000, and credit Cash for $120,000
Dash Company adopted a standard costing system several years ago. The standard costs for the prime...
Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (.e., direct materials and direct labor) of its single product are: Material Labor (5 kilograms x $6.00 per kilogram) (6 hours x $16.00 per hour) $30.00 96.00 All materials are added at the beginning of processing. The following data were taken from the company's records for November: In-process beginning inventory In-process ending inventory Units completed Budgeted output Purchases of materials Total actual direct...
Steinberg Company had the following direct materials costs for the manufacturing of product T in March:...
Steinberg Company had the following direct materials costs for the manufacturing of product T in March: Actual purchase price per pound of direct materials Standard direct materials allowed for units of product T produced Decrease in direct materials inventory Direct materials used in production Standard price per pound of material $ 8.10 2,700 pounds 160 pounds 2,900 pounds $ 7.85 Required: 1. What was Steinberg's direct materials purchase-price variance and its direct materials usage variance for March? Indicate whether each...
Steinberg Company had the following direct materials costs for the manufacturing of product T in March:...
Steinberg Company had the following direct materials costs for the manufacturing of product T in March: Actual purchase price per pound of direct materials Standard direct materials allowed for units of product T produced Decrease in direct materials inventory Direct materials used in production Standard price per pound of material $ 8.10 2,700 pounds 160 pounds 2,900 pounds $ 7.85 Required: 1. What was Steinberg's direct materials purchase-price variance and its direct materials usage variance for March? Indicate whether each...
Required information [The following information applies to the questions displayed below.] Hart Company made 3,080 bookshelves...
Required information [The following information applies to the questions displayed below.] Hart Company made 3,080 bookshelves using 22,080 board feet of wood costing $276,000. The company's direct materials standards for one bookshelf are 8 board feet of wood at $12.40 per board foot. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances and classify each as favorable or unfavorable. (2) Hart applies management by...
Information on Bowgie Chemicals direct materials costs follows: Actual quantities of direct materials used 31,400 Actual...
Information on Bowgie Chemicals direct materials costs
follows:
Actual quantities of direct materials used
31,400
Actual costs of direct materials used
$
142,600
Standard price per unit of direct materials
$
4.34
Flexible budget for direct materials
$
122,500
Bowgie Chemicals has no materials inventories.
Required: a. Prepare a short report for management showing Bowgie Chemicals's direct materials price and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is...
Information on Bowgie Chemicals direct materials costs follows. Actual quantities of direct materials used Actual costs...
Information on Bowgie Chemicals direct materials costs follows. Actual quantities of direct materials used Actual costs of direct materials used Standard price per unit of direct materials Flexible budget for direct materials 31,600 $144,200 $ 4.36 $122,900 Bowgie Chemicals has no materials inventories. Required: a. Prepare a short report for management showing Bowgie Chemicals's direct materials price and efficiency variances. b. (Appendix) Prepare the journal entries to record the purchase and use of the direct materials using standard costing. Complete...
American Hardwood Products uses standard costs in a process cost system. At the end of the curren...
American Hardwood Products uses standard costs in a process cost system. At the end of the current month, the following information is prepared by the company’s cost accountant. Direct Materials Direct Labor Manufacturing Overhead Actual costs incurred $ 90,388 $ 76,196 $ 115,908 Standard costs 84,388 77,696 108,168 Materials price variance (favorable) 2,400 Materials quantity variance (unfavorable) 8,400 Labor rate variance (favorable) 3,000 Labor efficiency variance (unfavorable) 1,500 Overhead spending variance (unfavorable) 3,240 Overhead volume variance (unfavorable) 4,500 The total...
During June, Propene Company produced 20,000 chainsaw blades. The standard quantity of material allowed per unit...
During June, Propene Company produced 20,000 chainsaw blades. The standard quantity of material allowed per unit was 2 pounds of steel per blade at a standard cost of $4 per pound. The actual purchase price was $5 per pound. Propene determined that it had a favorable materials usage variance of $2,000 for June. What is the journal entry to record the issuance and usage of materials? A.debit Work in Process, 120,000 debit Materials Usage Variance, 2,000 credit Materials, 120,000 b.debit...
1) 2) Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Standard Pric...
1)
2)
Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Standard Price (Rate) $ 5 per sq. ft. $14 per hr. Standard Unit Cost $ 75.00 130.20 Quantity 15 sq. ft. 9.3 hrs. Direct materials (fiberglass) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($35,000 + 260 units) 46.50 $5 per hr. 9.3 hrs. 134.62 Rip Tide has the following actual results for the month of June: Number of units produced and...
Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (.e., direct materials and direct labor) of its single product are: Material Labor (5 kilograms x $6.00 per kilogram) (6 hours x $16.00 per hour) $30.00 96.00 All materials are added at the beginning of processing. The following data were taken from the company's records for November: In-process beginning inventory In-process ending inventory Units completed Budgeted output Purchases of materials Total actual direct...
Steinberg Company had the following direct materials costs for the manufacturing of product T in March: Actual purchase price per pound of direct materials Standard direct materials allowed for units of product T produced Decrease in direct materials inventory Direct materials used in production Standard price per pound of material $ 8.10 2,700 pounds 160 pounds 2,900 pounds $ 7.85 Required: 1. What was Steinberg's direct materials purchase-price variance and its direct materials usage variance for March? Indicate whether each...
Steinberg Company had the following direct materials costs for the manufacturing of product T in March: Actual purchase price per pound of direct materials Standard direct materials allowed for units of product T produced Decrease in direct materials inventory Direct materials used in production Standard price per pound of material $ 8.10 2,700 pounds 160 pounds 2,900 pounds $ 7.85 Required: 1. What was Steinberg's direct materials purchase-price variance and its direct materials usage variance for March? Indicate whether each...
Required information [The following information applies to the questions displayed below.] Hart Company made 3,080 bookshelves using 22,080 board feet of wood costing $276,000. The company's direct materials standards for one bookshelf are 8 board feet of wood at $12.40 per board foot. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances and classify each as favorable or unfavorable. (2) Hart applies management by...
Information on Bowgie Chemicals direct materials costs
follows:
Actual quantities of direct materials used
31,400
Actual costs of direct materials used
$
142,600
Standard price per unit of direct materials
$
4.34
Flexible budget for direct materials
$
122,500
Bowgie Chemicals has no materials inventories.
Required: a. Prepare a short report for management showing Bowgie Chemicals's direct materials price and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is...
Information on Bowgie Chemicals direct materials costs follows. Actual quantities of direct materials used Actual costs of direct materials used Standard price per unit of direct materials Flexible budget for direct materials 31,600 $144,200 $ 4.36 $122,900 Bowgie Chemicals has no materials inventories. Required: a. Prepare a short report for management showing Bowgie Chemicals's direct materials price and efficiency variances. b. (Appendix) Prepare the journal entries to record the purchase and use of the direct materials using standard costing. Complete...
1)
2)
Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Standard Price (Rate) $ 5 per sq. ft. $14 per hr. Standard Unit Cost $ 75.00 130.20 Quantity 15 sq. ft. 9.3 hrs. Direct materials (fiberglass) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($35,000 + 260 units) 46.50 $5 per hr. 9.3 hrs. 134.62 Rip Tide has the following actual results for the month of June: Number of units produced and...
Most questions answered within 3 hours.
-
Is Goldicks negligent conduct committed within the
scope of his employment for Lapp Roofing liable
asked 3 minutes ago -
What are the effects of IMC-based PID controller and
Zeigler-Nicholas parameters on the specifications of a...
asked 7 minutes ago -
1. Explain the tem (10) Key Success Factors in Contemporary
Selling
asked 21 minutes ago -
It's absolutely linked, the effectiveness of the CP Coordinator
and the success of the business impact...
asked 30 minutes ago -
where does leadership reside in belief theory
asked 30 minutes ago -
Jane wants to purchase a bond with a face value of $8,595 and a
bond rate...
asked 32 minutes ago -
A bolt manufacturer wants to investigate the machine that
produces bolts with a diameter of 0.28...
asked 34 minutes ago -
DP Gumby produces sleeveless sweaters. He can separate the
demand function into a domestic component: QD=...
asked 57 minutes ago -
6) Weak acids are not very soluble in water. A). TRUE B).
FALSE
The answer says...
asked 1 hour ago -
Lab #2 Address Book Unsorted List (C++)
Using classes, design an online address book to keep...
asked 1 hour ago -
Tucson Machinery, Inc., manufactures numerically controlled
machines, which sell for an average price of $0.5 million...
asked 1 hour ago -
Review the referenced paper by Melse (2008). Describe the
research question being addressed. Discuss the methods...
asked 1 hour ago