Deck 19: Flexible Budgets, Standard Costs, and Variance Analysis

Question 1

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

Answer 1

$12,100 in the FOH Budget Variance column

Question 2

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

Answer 2

$600 in the Materials Quantity Variance column

Question 3

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 3

($16,700)in the FOH Budget Variance column

Question 4

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

Question 5

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 6

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 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

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 9

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.

Question 10

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 11

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 12

In the Excel spreadsheet approach in Appendix 9B 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 13

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 14

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 15

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 16

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 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

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 19

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 20

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 21

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 22

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 23

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 24

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 25

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 26

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 27

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 28

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 29

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 30

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 31

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 32

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 33

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 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

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 36

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 37

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 38

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 39

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 40

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 41

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 42

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 43

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 44

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 45

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 46

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 47

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 48

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 49

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 50

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 51

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 52

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 53

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 54

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 55

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 56

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 57

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 58

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 59

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 60

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 61

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 62

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 63

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 64

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 65

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 66

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)

Question 67

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 68

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 69

The net operating income for the year is closest to:

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

Question 70

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 71

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 72

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 73

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 74

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 75

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 76

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 77

The net operating income for the year is closest to:

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

Question 78

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 79

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 80

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