FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

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

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

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

E) All of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

The ending balance in the Raw Materials account will be closest to:

A) $206,690
B) $224,400
C) $47,410
D) $11,990

E) A) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

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

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:

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

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

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

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

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

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?

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:

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?

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

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

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

Lanciotti 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 company calculated the following variances for the year: The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $276,000 and budgeted activity of 24,000 hours. During the year, the company completed the following transactions: a.Purchased 110,100 pounds of raw material at a price of $6.10 per pound. b.Used 103,120 pounds of the raw material to produce 39,700 units of work in process. c.Assigned direct labor costs to work in process.The direct labor workers (who were paid in cash)worked 29,060 hours at an average cost of $21.80 per hour. d.Applied fixed overhead to the 39,700 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 $265,800.Of this total, $198,800 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $67,000 related to depreciation of manufacturing equipment. e.Transferred 39,700 units from work in process to finished goods. f.Sold for cash 34,600 units to customers at a price of $50.90 per unit. g.Completed and transferred the standard cost associated with the 34,600 units sold from finished goods to cost of goods sold. h.Paid $150,000 of selling and administrative expenses. i.Closed all standard cost variances to cost of goods sold. Required: 1.Record the above transactions in the worksheet that appears below.Because of the width of the worksheet, it is in two parts.In your text, these two parts would be joined side-by-side to make one very wide worksheet.The beginning balances have been provided for each of the accounts, including the Property, Plant, and Equipment (net)account which is abbreviated as PP&E (net). 2.Determine the ending balance (e.g., 12/31 balance)in each account. 3.Prepare an income statement for the year.

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:

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

Siciliano Corporation manufactures one product.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 concerning raw materials: a.Purchased 34,800 kilos of raw material at a price of $4.60 per kilo. b.Used 32,750 kilos of the raw material to produce 21,900 units of work in process. Required: Record the above transactions in the worksheet that appears below.Because of the width of the worksheet, it is in two parts.In your text, these two parts would be joined side-by-side to make one very wide worksheet.The beginning balances have been provided for each of the accounts, including the Property, Plant, and Equipment (net)account which is abbreviated as PP&E (net).

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