Deck 25: Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Question 1

Newbery Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The fixed manufacturing overhead standards for the company's only product specify 0.60 hours per unit at $9.50 per hour.The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $199,500 and budgeted activity of 21,000 hours.During the year,44,000 units were started and completed.Actual fixed overhead costs for the year were $216,200. Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the fixed manufacturing overhead cost is recorded,which of the following entries will be made?

A) ($16,700) in the FOH Budget Variance column
B) ($16,700) in the FOH Volume Variance column
C) $16,700 in the FOH Volume Variance column
D) $16,700 in the FOH Budget Variance column

Answer 1

A
Explanation:
Budget variance = Actual fixed overhead - Budgeted fixed overhead
= $216,200 - $199,500
= $16,700 U
Favorable variances are entered in the worksheet as positive entries and unfavorable variances as negative entries.

Question 2

Loos Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The direct labor standards for the company's only product specify 0.90 hours per unit at $21.50 per hour.During the year,the company started and completed 26,800 units.Direct labor employees worked 25,220 hours at an average cost of $22.50 per hour. Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the direct labor cost is recorded,which of the following entries will be made?

A) ($25,220) in the Labor Rate Variance column
B) $25,220 in the Labor Rate Variance column
C) $25,220 in the Labor Efficiency Variance column
D) ($25,220) in the Labor Efficiency Variance column

Answer 2

A
Explanation:
Labor rate variance = AH × (AR - SR)
= 25,220 hours × ($22.50 per hour - $21.50 per hour)
= 25,220 hours × ($1.00 per hour)
= $25,220 U
Favorable variances are entered in the worksheet as positive entries and unfavorable variances as negative entries.

Question 3

When Raw Materials,Work in Process,and Finished Goods are recorded and carried at their standard cost,the fixed overhead applied to work in process is calculated by multiplying the predetermined overhead rate by the actual direct labor-hours worked.

Answer 3

False

Question 4

Ciresi Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The company has provided the following information:
The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to:

A) $1,066,952
B) $877,902
C) $730,330
D) $582,758

Question 5

Lemke Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standard cost card for the company's only product is as follows:
During the year,the company started and completed 12,300 units.Direct labor employees worked 10,540 hours at an average cost of $22.40 per hour.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the direct labor cost is recorded,which of the following entries will be made?

A) $20,026 in the Labor Efficiency Variance column
B) $20,026 in the Labor Rate Variance column
C) ($20,026) in the Labor Rate Variance column
D) ($20,026) in the Labor Efficiency Variance column

Question 6

Shankland Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $67,500 and budgeted activity of 7,500 hours.During the year,24,600 units were started and completed.Actual fixed overhead costs for the year were $84,800.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When applying fixed manufacturing overhead to production,the Work in Process inventory account will increase (decrease)by:

A) $110,700
B) ($6,800)
C) ($110,700)
D) $6,800

Question 7

Sousa Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standards for direct materials for the company's only product specify 2.8 kilos per unit at $7.50 per kilo or $21.00 per unit.During the year,the company purchased 82,100 kilos of raw material at a price of $7.40 per kilo and used 78,020 kilos of the raw material to produce 27,900 units of work in process. Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the raw materials used in production are recorded,which of the following entries will be made?

A) $750 in the Materials Quantity Variance column
B) $750 in the Materials Price Variance column
C) ($750) in the Materials Quantity Variance column
D) ($750) in the Materials Price Variance column

Question 8

Platko Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $348,000 and budgeted activity of 24,000 hours.During the year,38,900 units were started and completed.Actual fixed overhead costs for the year were $335,900.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the fixed manufacturing overhead cost is recorded,which of the following entries will be made?

A) $12,100 in the FOH Volume Variance column
B) ($12,100) in the FOH Volume Variance column
C) $12,100 in the FOH Budget Variance column
D) ($12,100) in the FOH Budget Variance column

Question 9

Juliano Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standard cost card for the company's only product is as follows:
During the year,the company purchased 29,700 pounds of raw material at a price of $5.20 per pound and used 25,700 pounds of the raw material to produce 17,200 units of work in process.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the raw materials used in production are recorded,which of the following entries will be made?

A) $600 in the Materials Price Variance column
B) $600 in the Materials Quantity Variance column
C) ($600) in the Materials Price Variance column
D) ($600) in the Materials Quantity Variance column

Question 10

Dews Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The fixed manufacturing overhead standards for the company's only product specify 0.90 hours per unit at $20.50 per hour.The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $369,000 and budgeted activity of 18,000 hours.During the year,14,100 units were started and completed.Actual fixed overhead costs for the year were $386,200. Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the fixed manufacturing overhead cost is recorded,which of the following entries will be made?

A) $108,855 in the FOH Volume Variance column
B) ($108,855) in the FOH Budget Variance column
C) $108,855 in the FOH Budget Variance column
D) ($108,855) in the FOH Volume Variance column

Question 11

Ferrero Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The company has provided the following information:
The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
When the company closes its standard cost variances,the Cost of Goods Sold will increase (decrease)by:

A) $56,580
B) ($125,916)
C) ($56,580)
D) $125,916

Question 12

As defined it the text,the ending balance in retained earnings equals the beginning balance in retained earnings plus net operating income minus dividends.

Question 13

Karim Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standard cost card for the company's only product is as follows:
During the year,the company started and completed 31,500 units.Direct labor employees worked 23,650 hours at an average cost of $19.50 per hour.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When recording the direct labor costs,the Work in Process inventory account will increase (decrease)by:

A) $474,075
B) ($474,075)
C) ($461,175)
D) $461,175

Question 14

In the Excel spreadsheet approach in Appendix 10B in the text,each variance has its own clearing account that appears on the right-hand side of the "=" sign.This enables us to record all favorable variances as increases to their respective clearing accounts and all unfavorable variances as decreases to their accounts.

Question 15

Johanson Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standard cost card for the company's only product is as follows:
During the year,the company purchased 89,600 pounds of raw material at a price of $7.80 per pound and used 79,120 pounds of the raw material to produce 23,300 units of work in process.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When recording the raw materials purchases,the Raw Materials inventory account will increase (decrease)by:

A) $698,880
B) ($716,800)
C) ($698,880)
D) $716,800

Question 16

Bialas Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standards for direct materials for the company's only product specify 1.6 liters per unit at $7.00 per liter or $11.20 per unit.During the year,the company purchased 36,400 liters of raw material at a price of $7.40 per liter and used 32,060 liters of the raw material to produce 20,100 units of work in process. Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the purchase of raw materials is recorded,which of the following entries will be made?

A) ($14,560) in the Materials Quantity Variance column
B) ($14,560) in the Materials Price Variance column
C) $14,560 in the Materials Price Variance column
D) $14,560 in the Materials Quantity Variance column

Question 17

Dalgleish Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $358,750 and budgeted activity of 17,500 hours.During the year,32,900 units were started and completed.Actual fixed overhead costs for the year were $347,350.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the fixed manufacturing overhead cost is recorded,which of the following entries will be made?

A) ($113,365) in the FOH Budget Variance column
B) ($113,365) in the FOH Volume Variance column
C) $113,365 in the FOH Budget Variance column
D) $113,365 in the FOH Volume Variance column

Question 18

Isenberg Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The company does not have any variable manufacturing overhead costs.It recorded the following variances during the year:
When the company closes its standard cost variances,the Cost of Goods Sold will increase (decrease)by:

A) ($4,500)
B) $4,500
C) $96,955
D) ($96,955)

Question 19

When Raw Materials,Work in Process,and Finished Goods are recorded and carried at their standard cost,the actual prices paid for inputs and the actual quantities of inputs that are used in production affect the costs recorded in the inventory accounts.

Question 20

Ladue Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standards for direct materials for the company's only product specify 3.6 kilos per unit at $7.00 per kilo.During the year,the company purchased 67,600 kilos of raw material at a price of $6.40 per kilo and used 60,220 kilos of the raw material to produce 16,700 units of work in process. Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When recording the raw materials used in production,the Work in Process inventory account will increase (decrease)by:

A) $421,540
B) ($421,540)
C) $420,840
D) ($420,840)

Question 21

Kellems Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The company has provided the following information:
The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to:

A) $380,222
B) $344,818
C) $362,520
D) $472,562

Question 22

Isaman Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The direct labor standards for the company's only product specify 0.60 hours per unit at $21.50 per hour.During the year,the company started and completed 11,500 units.Direct labor employees worked 7,500 hours at an average cost of $19.50 per hour. During the year,the company started and completed 11,500 units.Direct labor employees worked 7,500 hours at an average cost of $19.50 per hour.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the direct labor cost is recorded,which of the following entries will be made?

A) ($12,900) in the Labor Rate Variance column
B) $12,900 in the Labor Efficiency Variance column
C) $12,900 in the Labor Rate Variance column
D) ($12,900) in the Labor Efficiency Variance column

Question 23

Phann Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $90,000 and budgeted activity of 7,500 hours.
During the year, the company completed the following transactions:
a. Purchased 59,000 kilos of raw material at a price of $9.20 per kilo.
b. Used 51,340 kilos of the raw material to produce 18,300 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 8,850 hours at an average cost of $23.70 per hour.
d. Applied fixed overhead to the 18,300 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $79,400. Of this total, $22,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $57,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 18,300 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials used in production in transaction (b)above,the Work in Process inventory account will increase (decrease)by:

A) $436,390
B) ($436,390)
C) ($435,540)
D) $435,540

Question 24

Phann Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $90,000 and budgeted activity of 7,500 hours.
During the year, the company completed the following transactions:
a. Purchased 59,000 kilos of raw material at a price of $9.20 per kilo.
b. Used 51,340 kilos of the raw material to produce 18,300 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 8,850 hours at an average cost of $23.70 per hour.
d. Applied fixed overhead to the 18,300 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $79,400. Of this total, $22,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $57,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 18,300 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the direct labor costs in transaction (c)above,the Cash account will increase (decrease)by:

A) ($201,300)
B) $201,300
C) ($209,745)
D) $209,745

Question 25

Signore Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standard cost card for the company's only product is as follows:
During the year,the company purchased 34,600 gallons of raw material at a price of $9.10 per gallon and used 30,050 gallons of the raw material to produce 20,100 units of work in process.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the purchase of raw materials is recorded,which of the following entries will be made?

A) $3,460 in the Materials Quantity Variance column
B) ($3,460) in the Materials Price Variance column
C) $3,460 in the Materials Price Variance column
D) ($3,460) in the Materials Quantity Variance column

Question 26

Dougher Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standard cost card for the company's only product is as follows:
During the year,the company started and completed 26,900 units.Direct labor employees worked 14,250 hours at an average cost of $20.20 per hour.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the direct labor cost is recorded,which of the following entries will be made?

A) ($14,800) in the Labor Efficiency Variance column
B) $14,800 in the Labor Rate Variance column
C) ($14,800) in the Labor Rate Variance column
D) $14,800 in the Labor Efficiency Variance column

Question 27

Scogin Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standard cost card for the company's only product is as follows:
During the year,the company purchased 76,500 pounds of raw material at a price of $8.70 per pound and used 71,880 pounds of the raw material to produce 19,400 units of work in process.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When recording the raw materials used in production,the Work in Process inventory account will increase (decrease)by:

A) ($646,020)
B) $646,020
C) ($646,920)
D) $646,920

Question 28

Colbeck Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standard cost card for the company's only product is as follows:
During the year,the company purchased 68,000 gallons of raw material at a price of $5.40 per gallon and used 62,660 gallons of the raw material to produce 18,400 units of work in process.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When recording the raw materials used in production,the Raw Materials inventory account will increase (decrease)by:

A) ($375,960)
B) $375,960
C) ($338,364)
D) $338,364

Question 29

Sobus Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The fixed manufacturing overhead standards for the company's only product specify 0.70 hours per unit at $4.00 per hour.The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $70,000 and budgeted activity of 17,500 hours.During the year,19,700 units were started and completed.Actual fixed overhead costs for the year were $57,700. Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When applying fixed manufacturing overhead to production,the Work in Process inventory account will increase (decrease)by:

A) $55,160
B) ($26,300)
C) $26,300
D) ($55,160)

Question 30

Phann Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $90,000 and budgeted activity of 7,500 hours.
During the year, the company completed the following transactions:
a. Purchased 59,000 kilos of raw material at a price of $9.20 per kilo.
b. Used 51,340 kilos of the raw material to produce 18,300 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 8,850 hours at an average cost of $23.70 per hour.
d. Applied fixed overhead to the 18,300 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $79,400. Of this total, $22,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $57,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 18,300 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When applying fixed manufacturing overhead to production in transaction (d)above,the Work in Process inventory account will increase (decrease)by:

A) ($109,800)
B) $22,400
C) $109,800
D) ($22,400)

Question 31

Gersbach Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The company has provided the following information:
The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
The net operating income for the year is closest to:

A) ($2,349)
B) $85,915
C) $70,200
D) $145,368

Question 32

Rhudy Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The direct labor standards for the company's only product specify 0.60 hours per unit at $20.00 per hour.During the year,the company started and completed 20,700 units.Direct labor employees worked 12,120 hours at an average cost of $18.90 per hour. Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When recording the direct labor costs,the Work in Process inventory account will increase (decrease)by:

A) ($229,068)
B) ($248,400)
C) $229,068
D) $248,400

Question 33

Phann Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $90,000 and budgeted activity of 7,500 hours.
During the year, the company completed the following transactions:
a. Purchased 59,000 kilos of raw material at a price of $9.20 per kilo.
b. Used 51,340 kilos of the raw material to produce 18,300 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 8,850 hours at an average cost of $23.70 per hour.
d. Applied fixed overhead to the 18,300 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $79,400. Of this total, $22,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $57,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 18,300 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials purchases in transaction (a)above,the Raw Materials inventory account will increase (decrease)by:

A) $501,500
B) $542,800
C) ($501,500)
D) ($542,800)

Question 34

Lisser Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standards for direct materials for the company's only product specify 2.7 liters per unit at $7.50 per liter or $20.25 per unit.During the year,the company purchased 67,300 liters of raw material at a price of $8.00 per liter and used 61,660 liters of the raw material to produce 22,800 units of work in process. Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When recording the raw materials used in production,the Raw Materials inventory account will increase (decrease)by:

A) ($493,280)
B) $493,280
C) $462,450
D) ($462,450)

Question 35

Mccreary Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standard cost of the company's product is $28.00per unit.During the year the company sold 27,500 units at $36.30 per unit.The actual selling and administrative expenses were $121,000 for the year.The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
The net operating income for the year is closest to:

A) $107,250
B) $55,272
C) $118,446
D) $79,816

Question 36

Landoni Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standards for direct materials for the company's only product specify 2.7 kilos per unit at $5.00 per kilo or $13.50 per unit.During the year,the company purchased 75,200 kilos of raw material at a price of $4.90 per kilo and used 69,290 kilos of the raw material to produce 25,700 units of work in process. Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When recording the raw materials purchases,the Raw Materials inventory account will increase (decrease)by:

A) ($368,480)
B) $376,000
C) ($376,000)
D) $368,480

Question 37

Phann Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $90,000 and budgeted activity of 7,500 hours.
During the year, the company completed the following transactions:
a. Purchased 59,000 kilos of raw material at a price of $9.20 per kilo.
b. Used 51,340 kilos of the raw material to produce 18,300 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 8,850 hours at an average cost of $23.70 per hour.
d. Applied fixed overhead to the 18,300 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $79,400. Of this total, $22,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $57,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 18,300 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the direct labor costs in transaction (c)above,the Work in Process inventory account will increase (decrease)by:

A) $201,300
B) ($201,300)
C) $209,745
D) ($209,745)

Question 38

Phann Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $90,000 and budgeted activity of 7,500 hours.
During the year, the company completed the following transactions:
a. Purchased 59,000 kilos of raw material at a price of $9.20 per kilo.
b. Used 51,340 kilos of the raw material to produce 18,300 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 8,850 hours at an average cost of $23.70 per hour.
d. Applied fixed overhead to the 18,300 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $79,400. Of this total, $22,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $57,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 18,300 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials used in production in transaction (b)above,the Raw Materials inventory account will increase (decrease)by:

A) ($436,390)
B) ($472,328)
C) $472,328
D) $436,390

Question 39

Phann Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $90,000 and budgeted activity of 7,500 hours.
During the year, the company completed the following transactions:
a. Purchased 59,000 kilos of raw material at a price of $9.20 per kilo.
b. Used 51,340 kilos of the raw material to produce 18,300 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 8,850 hours at an average cost of $23.70 per hour.
d. Applied fixed overhead to the 18,300 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $79,400. Of this total, $22,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $57,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 18,300 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials purchases in transaction (a)above,the Cash account will increase (decrease)by:

A) ($501,500)
B) $501,500
C) $542,800
D) ($542,800)

Question 40

Phann Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $90,000 and budgeted activity of 7,500 hours.
During the year, the company completed the following transactions:
a. Purchased 59,000 kilos of raw material at a price of $9.20 per kilo.
b. Used 51,340 kilos of the raw material to produce 18,300 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 8,850 hours at an average cost of $23.70 per hour.
d. Applied fixed overhead to the 18,300 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $79,400. Of this total, $22,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $57,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 18,300 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the work in process is completed and transferred to finished goods in transaction (e)above,the Finished Goods inventory account will increase (decrease)by:

A) $746,640
B) ($771,325)
C) ($746,640)
D) $771,325

Question 41

Bohon Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product contains the following information concerning direct materials:
During the year, the company completed the following transactions concerning direct materials:
a. Purchased 19,700 pounds of raw material at a price of $4.70 per pound.
b. Used 18,500 pounds of the raw material to produce 18,400 units of work in process.
The company calculated the following direct materials variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials used in production in transaction (b)above,the Work in Process inventory account will increase (decrease)by:

A) $101,200
B) ($101,200)
C) $101,750
D) ($101,750)

Question 42

Neuhaus Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
During the year, the company completed the following transactions:
a. Purchased 52,900 gallons of raw material at a price of $7.60 per gallon.
b. Used 46,820 gallons of the raw material to produce 27,600 units of work in process.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials purchases in transaction (a)above,the Cash account will increase (decrease)by:

A) ($396,750)
B) ($402,040)
C) $402,040
D) $396,750

Question 43

Neuhaus Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
During the year, the company completed the following transactions:
a. Purchased 52,900 gallons of raw material at a price of $7.60 per gallon.
b. Used 46,820 gallons of the raw material to produce 27,600 units of work in process.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials purchases in transaction (a)above,the Raw Materials inventory account will increase (decrease)by:

A) $396,750
B) ($402,040)
C) $402,040
D) ($396,750)

Question 44

Decena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows:
During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 15,830 hours at an average cost of $18.50 per hour. The company calculated the following direct labor variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the direct labor cost is recorded,which of the following entries will be made?

A) ($7,915) in the Labor Efficiency Variance column
B) $7,915 in the Labor Rate Variance column
C) $7,915 in the Labor Efficiency Variance column
D) ($7,915) in the Labor Rate Variance column

Question 45

Bohon Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product contains the following information concerning direct materials:
During the year, the company completed the following transactions concerning direct materials:
a. Purchased 19,700 pounds of raw material at a price of $4.70 per pound.
b. Used 18,500 pounds of the raw material to produce 18,400 units of work in process.
The company calculated the following direct materials variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials purchases in transaction (a)above,the Cash account will increase (decrease)by:

A) ($92,590)
B) ($108,350)
C) $108,350
D) $92,590

Question 46

Bohon Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product contains the following information concerning direct materials:
During the year, the company completed the following transactions concerning direct materials:
a. Purchased 19,700 pounds of raw material at a price of $4.70 per pound.
b. Used 18,500 pounds of the raw material to produce 18,400 units of work in process.
The company calculated the following direct materials variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials used in production in transaction (b)above,the Raw Materials inventory account will increase (decrease)by:

A) ($86,950)
B) $101,750
C) $86,950
D) ($101,750)

Question 47

Ester Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $168,000 and budgeted activity of 24,000 hours.
During the year, the company applied fixed overhead to the 22,600 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $149,800. Of this total, $83,800 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $66,000 related to depreciation of manufacturing equipment.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When applying fixed manufacturing overhead to production,the Work in Process inventory account will increase (decrease)by:

A) $83,800
B) ($83,800)
C) $126,560
D) ($126,560)

Question 48

Neuhaus Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
During the year, the company completed the following transactions:
a. Purchased 52,900 gallons of raw material at a price of $7.60 per gallon.
b. Used 46,820 gallons of the raw material to produce 27,600 units of work in process.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the purchase of raw materials is recorded in transaction (a)above,which of the following entries will be made?

A) $5,290 in the Materials Price Variance column
B) ($5,290) in the Materials Price Variance column
C) $5,290 in the Materials Quantity Variance column
D) ($5,290) in the Materials Quantity Variance column

Question 49

Neuhaus Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
During the year, the company completed the following transactions:
a. Purchased 52,900 gallons of raw material at a price of $7.60 per gallon.
b. Used 46,820 gallons of the raw material to produce 27,600 units of work in process.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the raw materials used in production are recorded in transaction (b)above,which of the following entries will be made?

A) $750 in the Materials Quantity Variance column
B) $750 in the Materials Price Variance column
C) ($750) in the Materials Quantity Variance column
D) ($750) in the Materials Price Variance column

Question 50

Jakeman Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead.
The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $351,000 and budgeted activity of 27,000 hours.
During the year, the company completed the following transactions:
a. Purchased 76,600 gallons of raw material at a price of $7.90 per gallon.
b. Used 70,960 gallons of the raw material to produce 20,900 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 18,710 hours at an average cost of $19.40 per hour.
d. Applied fixed overhead to the 20,900 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $334,600. Of this total, $252,600 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $82,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 20,900 units from work in process to finished goods.
f. Sold (for cash) 17,700 units to customers at a price of $74.30 per unit.
g. Transferred the standard cost associated with the 17,700 units sold from finished goods to cost of goods sold.
h. Paid $93,000 of selling and administrative expenses.
i. Closed all standard cost variances to cost of goods sold.
The company calculated the following variances for the year:
To answer the following questions, it would be advisable to record transactions a through i in the worksheet below. This worksheet is similar to the worksheets in your text except that it has been split into two parts to fit on the page. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to:

A) $784,496
B) $1,160,621
C) $938,985
D) $1,093,474

Question 51

Decena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows:
During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 15,830 hours at an average cost of $18.50 per hour. The company calculated the following direct labor variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the direct labor costs,the Work in Process inventory account will increase (decrease)by:

A) ($292,855)
B) $286,740
C) $292,855
D) ($286,740)

Question 52

Decena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows:
During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 15,830 hours at an average cost of $18.50 per hour. The company calculated the following direct labor variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the direct labor cost is recorded,which of the following entries will be made?

A) $1,800 in the Labor Efficiency Variance column
B) ($1,800) in the Labor Rate Variance column
C) $1,800 in the Labor Rate Variance column
D) ($1,800) in the Labor Efficiency Variance column

Question 53

Neuhaus Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
During the year, the company completed the following transactions:
a. Purchased 52,900 gallons of raw material at a price of $7.60 per gallon.
b. Used 46,820 gallons of the raw material to produce 27,600 units of work in process.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials used in production in transaction (b)above,the Raw Materials inventory account will increase (decrease)by:

A) ($355,832)
B) $355,832
C) $351,150
D) ($351,150)

Question 54

Decena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows:
During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 15,830 hours at an average cost of $18.50 per hour. The company calculated the following direct labor variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the direct labor costs,the Cash account will increase (decrease)by:

A) ($286,740)
B) ($292,855)
C) $286,740
D) $292,855

Question 55

Ester Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $168,000 and budgeted activity of 24,000 hours.
During the year, the company applied fixed overhead to the 22,600 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $149,800. Of this total, $83,800 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $66,000 related to depreciation of manufacturing equipment.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the fixed manufacturing overhead cost is recorded,which of the following entries will be made?

A) $18,200 in the FOH Volume Variance column
B) $18,200 in the FOH Budget Variance column
C) ($18,200) in the FOH Budget Variance column
D) ($18,200) in the FOH Volume Variance column

Question 56

Bohon Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product contains the following information concerning direct materials:
During the year, the company completed the following transactions concerning direct materials:
a. Purchased 19,700 pounds of raw material at a price of $4.70 per pound.
b. Used 18,500 pounds of the raw material to produce 18,400 units of work in process.
The company calculated the following direct materials variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the raw materials used in production are recorded in transaction (b)above,which of the following entries will be made?

A) ($550) in the Materials Price Variance column
B) ($550) in the Materials Quantity Variance column
C) $550 in the Materials Price Variance column
D) $550 in the Materials Quantity Variance column

Question 57

Jakeman Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead.
The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $351,000 and budgeted activity of 27,000 hours.
During the year, the company completed the following transactions:
a. Purchased 76,600 gallons of raw material at a price of $7.90 per gallon.
b. Used 70,960 gallons of the raw material to produce 20,900 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 18,710 hours at an average cost of $19.40 per hour.
d. Applied fixed overhead to the 20,900 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $334,600. Of this total, $252,600 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $82,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 20,900 units from work in process to finished goods.
f. Sold (for cash) 17,700 units to customers at a price of $74.30 per unit.
g. Transferred the standard cost associated with the 17,700 units sold from finished goods to cost of goods sold.
h. Paid $93,000 of selling and administrative expenses.
i. Closed all standard cost variances to cost of goods sold.
The company calculated the following variances for the year:
To answer the following questions, it would be advisable to record transactions a through i in the worksheet below. This worksheet is similar to the worksheets in your text except that it has been split into two parts to fit on the page. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the company closes its standard cost variances,the Cost of Goods Sold will increase (decrease)by:

A) ($90,070)
B) $154,489
C) $90,070
D) ($154,489)

Question 58

Ester Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $168,000 and budgeted activity of 24,000 hours.
During the year, the company applied fixed overhead to the 22,600 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $149,800. Of this total, $83,800 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $66,000 related to depreciation of manufacturing equipment.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the fixed manufacturing overhead cost is recorded,which of the following entries will be made?

A) ($41,440) in the FOH Budget Variance column
B) ($41,440) in the FOH Volume Variance column
C) $41,440 in the FOH Volume Variance column
D) $41,440 in the FOH Budget Variance column

Question 59

Bohon Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product contains the following information concerning direct materials:
During the year, the company completed the following transactions concerning direct materials:
a. Purchased 19,700 pounds of raw material at a price of $4.70 per pound.
b. Used 18,500 pounds of the raw material to produce 18,400 units of work in process.
The company calculated the following direct materials variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the purchase of raw materials is recorded in transaction (a)above,which of the following entries will be made?

A) $15,760 in the Materials Quantity Variance column
B) ($15,760) in the Materials Price Variance column
C) ($15,760) in the Materials Quantity Variance column
D) $15,760 in the Materials Price Variance column

Question 60

Bohon Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product contains the following information concerning direct materials:
During the year, the company completed the following transactions concerning direct materials:
a. Purchased 19,700 pounds of raw material at a price of $4.70 per pound.
b. Used 18,500 pounds of the raw material to produce 18,400 units of work in process.
The company calculated the following direct materials variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials purchases in transaction (a)above,the Raw Materials inventory account will increase (decrease)by:

A) ($92,590)
B) $108,350
C) $92,590
D) ($108,350)

Question 61

Robnett Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
During the year, the company completed the following transactions:
a. Purchased 106,900 liters of raw material at a price of $6.80 per liter.
b. Used 93,760 liters of the raw material to produce 24,700 units of work in process.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the purchase of raw materials is recorded in transaction (a)above,which of the following entries will be made?

A) $32,070 in the Materials Price Variance column
B) ($32,070) in the Materials Quantity Variance column
C) $32,070 in the Materials Quantity Variance column
D) ($32,070) in the Materials Price Variance column

Question 62

Robnett Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
During the year, the company completed the following transactions:
a. Purchased 106,900 liters of raw material at a price of $6.80 per liter.
b. Used 93,760 liters of the raw material to produce 24,700 units of work in process.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials purchases in transaction (a)above,the Raw Materials inventory account will increase (decrease)by:

A) $726,920
B) ($694,850)
C) ($726,920)
D) $694,850

Question 63

Robins Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $360,000 and budgeted activity of 20,000 hours.
During the year, the company completed the following transactions:
a. Purchased 134,700 pounds of raw material at a price of $9.10 per pound.
b. Used 122,080 pounds of the raw material to produce 32,100 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 26,680 hours at an average cost of $17.20 per hour.
d. Applied fixed overhead to the 32,100 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $378,400. Of this total, $297,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $81,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 32,100 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials purchases in transaction (a)above,the Raw Materials inventory account will increase (decrease)by:

A) $1,279,650
B) ($1,279,650)
C) ($1,225,770)
D) $1,225,770

Question 64

Robins Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $360,000 and budgeted activity of 20,000 hours.
During the year, the company completed the following transactions:
a. Purchased 134,700 pounds of raw material at a price of $9.10 per pound.
b. Used 122,080 pounds of the raw material to produce 32,100 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 26,680 hours at an average cost of $17.20 per hour.
d. Applied fixed overhead to the 32,100 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $378,400. Of this total, $297,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $81,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 32,100 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When applying fixed manufacturing overhead to production in transaction (d)above,the Work in Process inventory account will increase (decrease)by:

A) $297,400
B) $462,240
C) ($462,240)
D) ($297,400)

Question 65

Robins Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $360,000 and budgeted activity of 20,000 hours.
During the year, the company completed the following transactions:
a. Purchased 134,700 pounds of raw material at a price of $9.10 per pound.
b. Used 122,080 pounds of the raw material to produce 32,100 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 26,680 hours at an average cost of $17.20 per hour.
d. Applied fixed overhead to the 32,100 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $378,400. Of this total, $297,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $81,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 32,100 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials used in production in transaction (b)above,the Work in Process inventory account will increase (decrease)by:

A) ($1,158,810)
B) $1,158,810
C) ($1,159,760)
D) $1,159,760

Question 66

Robnett Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
During the year, the company completed the following transactions:
a. Purchased 106,900 liters of raw material at a price of $6.80 per liter.
b. Used 93,760 liters of the raw material to produce 24,700 units of work in process.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials purchases in transaction (a)above,the Cash account will increase (decrease)by:

A) $726,920
B) ($694,850)
C) ($726,920)
D) $694,850

Question 67

Mangrum Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows:
During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 12,790 hours at an average cost of $19.50 per hour. The company calculated the following direct labor variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the direct labor cost is recorded,which of the following entries will be made?

A) ($6,450) in the Labor Efficiency Variance column
B) $6,450 in the Labor Efficiency Variance column
C) ($6,450) in the Labor Rate Variance column
D) $6,450 in the Labor Rate Variance column

Question 68

Jakeman Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead.
The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $351,000 and budgeted activity of 27,000 hours.
During the year, the company completed the following transactions:
a. Purchased 76,600 gallons of raw material at a price of $7.90 per gallon.
b. Used 70,960 gallons of the raw material to produce 20,900 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 18,710 hours at an average cost of $19.40 per hour.
d. Applied fixed overhead to the 20,900 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $334,600. Of this total, $252,600 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $82,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 20,900 units from work in process to finished goods.
f. Sold (for cash) 17,700 units to customers at a price of $74.30 per unit.
g. Transferred the standard cost associated with the 17,700 units sold from finished goods to cost of goods sold.
h. Paid $93,000 of selling and administrative expenses.
i. Closed all standard cost variances to cost of goods sold.
The company calculated the following variances for the year:
To answer the following questions, it would be advisable to record transactions a through i in the worksheet below. This worksheet is similar to the worksheets in your text except that it has been split into two parts to fit on the page. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

The net operating income for the year is closest to:

A) $45,952
B) $128,636
C) $226,034
D) $283,125

Question 69

Samples Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead.
The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $140,000 and budgeted activity of 20,000 hours.
During the year, the company completed the following transactions:
a. Purchased 49,500 liters of raw material at a price of $8.00 per liter. The materials price variance was $24,750 F.
b. Used 45,820 liters of the raw material to produce 32,800 units of work in process. The materials quantity variance was $850 F.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 28,440 hours at an average cost of $17.00 per hour. The direct labor rate variance was $28,440 F. The labor efficiency variance was $39,600 U.
d. Applied fixed overhead to the 32,800 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $154,700. Of this total, $83,700 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $71,000 related to depreciation of manufacturing equipment. The fixed manufacturing overhead budget variance was $14,700 U. The fixed manufacturing overhead volume variance was $43,680 F.
e. Completed and transferred 32,800 units from work in process to finished goods.
f. Sold (for cash) 32,000 units to customers at a price of $38.20 per unit.
g. Transferred the standard cost associated with the 32,000 units sold from finished goods to cost of goods sold.
h. Paid $133,000 of selling and administrative expenses.
i. Closed all standard cost variances to cost of goods sold.
To answer the following questions, it would be advisable to record transactions a through i in the worksheet below. This worksheet is similar to the worksheets in your text except that it has been split into two parts to fit on the page. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

The net operating income for the year is closest to:

A) $155,660
B) $178,434
C) $68,600
D) $112,020

Question 70

Samples Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead.
The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $140,000 and budgeted activity of 20,000 hours.
During the year, the company completed the following transactions:
a. Purchased 49,500 liters of raw material at a price of $8.00 per liter. The materials price variance was $24,750 F.
b. Used 45,820 liters of the raw material to produce 32,800 units of work in process. The materials quantity variance was $850 F.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 28,440 hours at an average cost of $17.00 per hour. The direct labor rate variance was $28,440 F. The labor efficiency variance was $39,600 U.
d. Applied fixed overhead to the 32,800 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $154,700. Of this total, $83,700 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $71,000 related to depreciation of manufacturing equipment. The fixed manufacturing overhead budget variance was $14,700 U. The fixed manufacturing overhead volume variance was $43,680 F.
e. Completed and transferred 32,800 units from work in process to finished goods.
f. Sold (for cash) 32,000 units to customers at a price of $38.20 per unit.
g. Transferred the standard cost associated with the 32,000 units sold from finished goods to cost of goods sold.
h. Paid $133,000 of selling and administrative expenses.
i. Closed all standard cost variances to cost of goods sold.
To answer the following questions, it would be advisable to record transactions a through i in the worksheet below. This worksheet is similar to the worksheets in your text except that it has been split into two parts to fit on the page. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to:

A) $977,380
B) $1,020,800
C) $1,265,820
D) $1,064,220

Question 71

Mangrum Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows:
During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 12,790 hours at an average cost of $19.50 per hour. The company calculated the following direct labor variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the direct labor costs,the Work in Process inventory account will increase (decrease)by:

A) ($249,405)
B) $249,405
C) ($281,435)
D) $281,435

Question 72

Mangrum Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows:
During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 12,790 hours at an average cost of $19.50 per hour. The company calculated the following direct labor variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the direct labor costs,the Cash account will increase (decrease)by:

A) ($249,405)
B) $281,435
C) ($281,435)
D) $249,405

Question 73

Robins Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $360,000 and budgeted activity of 20,000 hours.
During the year, the company completed the following transactions:
a. Purchased 134,700 pounds of raw material at a price of $9.10 per pound.
b. Used 122,080 pounds of the raw material to produce 32,100 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 26,680 hours at an average cost of $17.20 per hour.
d. Applied fixed overhead to the 32,100 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $378,400. Of this total, $297,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $81,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 32,100 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the direct labor costs in transaction (c)above,the Cash account will increase (decrease)by:

A) $458,896
B) $475,080
C) ($458,896)
D) ($475,080)

Question 74

Robnett Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
During the year, the company completed the following transactions:
a. Purchased 106,900 liters of raw material at a price of $6.80 per liter.
b. Used 93,760 liters of the raw material to produce 24,700 units of work in process.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials used in production in transaction (b)above,the Raw Materials inventory account will increase (decrease)by:

A) $609,440
B) $637,568
C) ($637,568)
D) ($609,440)

Question 75

Robins Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $360,000 and budgeted activity of 20,000 hours.
During the year, the company completed the following transactions:
a. Purchased 134,700 pounds of raw material at a price of $9.10 per pound.
b. Used 122,080 pounds of the raw material to produce 32,100 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 26,680 hours at an average cost of $17.20 per hour.
d. Applied fixed overhead to the 32,100 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $378,400. Of this total, $297,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $81,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 32,100 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials purchases in transaction (a)above,the Cash account will increase (decrease)by:

A) ($1,279,650)
B) ($1,225,770)
C) $1,279,650
D) $1,225,770

Question 76

Robins Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $360,000 and budgeted activity of 20,000 hours.
During the year, the company completed the following transactions:
a. Purchased 134,700 pounds of raw material at a price of $9.10 per pound.
b. Used 122,080 pounds of the raw material to produce 32,100 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 26,680 hours at an average cost of $17.20 per hour.
d. Applied fixed overhead to the 32,100 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $378,400. Of this total, $297,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $81,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 32,100 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the raw materials used in production in transaction (b)above,the Raw Materials inventory account will increase (decrease)by:

A) ($1,110,928)
B) $1,159,760
C) $1,110,928
D) ($1,159,760)

Question 77

Mangrum Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows:
During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 12,790 hours at an average cost of $19.50 per hour. The company calculated the following direct labor variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the direct labor cost is recorded,which of the following entries will be made?

A) $25,580 in the Labor Rate Variance column
B) ($25,580) in the Labor Rate Variance column
C) ($25,580) in the Labor Efficiency Variance column
D) $25,580 in the Labor Efficiency Variance column

Question 78

Robnett Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
During the year, the company completed the following transactions:
a. Purchased 106,900 liters of raw material at a price of $6.80 per liter.
b. Used 93,760 liters of the raw material to produce 24,700 units of work in process.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the raw materials used in production are recorded in transaction (b)above,which of the following entries will be made?

A) $650 in the Materials Quantity Variance column
B) ($650) in the Materials Price Variance column
C) ($650) in the Materials Quantity Variance column
D) $650 in the Materials Price Variance column

Question 79

Robins Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $360,000 and budgeted activity of 20,000 hours.
During the year, the company completed the following transactions:
a. Purchased 134,700 pounds of raw material at a price of $9.10 per pound.
b. Used 122,080 pounds of the raw material to produce 32,100 units of work in process.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 26,680 hours at an average cost of $17.20 per hour.
d. Applied fixed overhead to the 32,100 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $378,400. Of this total, $297,400 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $81,000 related to depreciation of manufacturing equipment.
e. Completed and transferred 32,100 units from work in process to finished goods.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When recording the direct labor costs in transaction (c)above,the Work in Process inventory account will increase (decrease)by:

A) $458,896
B) $475,080
C) ($475,080)
D) ($458,896)

Question 80

Samples Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead.
The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $140,000 and budgeted activity of 20,000 hours.
During the year, the company completed the following transactions:
a. Purchased 49,500 liters of raw material at a price of $8.00 per liter. The materials price variance was $24,750 F.
b. Used 45,820 liters of the raw material to produce 32,800 units of work in process. The materials quantity variance was $850 F.
c. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 28,440 hours at an average cost of $17.00 per hour. The direct labor rate variance was $28,440 F. The labor efficiency variance was $39,600 U.
d. Applied fixed overhead to the 32,800 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $154,700. Of this total, $83,700 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $71,000 related to depreciation of manufacturing equipment. The fixed manufacturing overhead budget variance was $14,700 U. The fixed manufacturing overhead volume variance was $43,680 F.
e. Completed and transferred 32,800 units from work in process to finished goods.
f. Sold (for cash) 32,000 units to customers at a price of $38.20 per unit.
g. Transferred the standard cost associated with the 32,000 units sold from finished goods to cost of goods sold.
h. Paid $133,000 of selling and administrative expenses.
i. Closed all standard cost variances to cost of goods sold.
To answer the following questions, it would be advisable to record transactions a through i in the worksheet below. This worksheet is similar to the worksheets in your text except that it has been split into two parts to fit on the page. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

When the company closes its standard cost variances,the Cost of Goods Sold will increase (decrease)by:

A) $43,420
B) ($28,980)
C) $28,980
D) ($43,420)