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Assume that SQ Standard Quantity SP Standard Price AQ Actual Quantity and AP Actual Price Also assume a favourable materials usage

Assume that SQ = Standard Quantity, SP = Standard Price, AQ = Actual Quantity, and AP = Actual Price. Also assume a favourable materials usage variance. Which of the following would be the journal entry and the equation to record the issuance and usage of materials?

a.Work in Process                                                          SQ  ?  SP

Materials Usage Variance                                               (AQ ? SQ)SP

Materials                                                                                AQ  ?  SP

b.Work in Process                                                          SQ  ?  SP

Materials Usage Variance                                               (AQ ? SQ)SP

Materials                                                                               AQ  ?  SP

c.Work in Process                                                         AQ  ?  AP

Materials Usage Variance                                               (AQ ? SQ)SP

Materials                                                                               AQ  ?  SP

d.Work in Process                                                         AQ  ?  AP

Materials Usage Variance                                               (AQ ? SQ)SP

Materials                                                                               AQ  ?  SP

 

 

 

43.Which of the following is characteristic of the disposition of materials and labour variances?

a.The variances for materials and labour are closed directly to cost of goods sold regardless of materiality.

b.If the materials price variance is material, it is prorated among materials inventory, materials usage variance, work in process, and finished goods.

c.The materials usage variance and the labour variances, if material, are prorated among work in process, finished goods, and cost of goods sold.

d.The materials usage variance and the labour variances are prorated among work in process, finished goods, and cost of goods sold.

 

 

 

During the month of March, Baker’s Express purchased 10,000 kg of flour at $1 per kilogram.

 

44.Refer to Baker’s Express. At the end of March, Baker’s Express found that it had an unfavourable materials price variance of $500. What is the flour’s standard cost per kilogram?

a.$0.95

b.$1.00

c.$1.05

d.$1.95

 

 

 

45.Refer to Baker’s Express. At the end of March, Baker’s Express found that it had a favourable materials price variance of $500. What is the flour’s standard cost per kilogram?

a.$0.95

b.$1.00

c.$1.05

d.$1.95

 

 

 

 

During June, Cisco Company produced 12,000 chainsaw blades. The standard quantity of material allowed per unit was 1.5 kg of steel per blade at a standard cost of $8 per kilogram.

 

46.Refer to Cisco CompanyCisco determined that it had a favourable materials usage variance of $1,000 for June. What was the actual quantity of materials Cisco used?

a.11,875 kg

b.12,125 kg

c.17,875 kg

d.18,125 kg

 

 

 

47.Refer to Cisco Company. Suppose the actual cost was $7 per kilogram and Cisco purchased 19,500 kg of steel. All materials purchased were used. What was Cisco’s materials usage variance?

a.$10,500 U

b.$10,500 F

c.$12,000 U

d.$12,000 F

 

 

 

48.Perfect Builders makes mouldings. Its standard quantity of material allowed is 1 m of wood per 1 m of moulding at a standard price of $2.00 per metre. During August, Perfect Builders purchased 500,000 m of wood at a cost of $1.90 per metre, which produced only 499,000 m of moulding. What was the materials price variance and the materials usage variance, respectively?

a.$49,900 U and $2,000 F

b.$49,900 F and $1,900 U

c.$50,000 F and $1,900 U

d.$50,000 F and $2,000 U

 

 

 

49.Roberts Company uses a standard costing system. The following information pertains to direct materials for the month of July:

Standard price per kilogram$18.00

Actual purchase price per kilogram$16.50

Quantity purchased3,100 kg

Quantity used2,950 kg

Standard quantity allowed for actual output3,000 kg

Actual output1,000 units

 

Roberts Company reports its material price variances at the time of purchase. What is the material usage variance for Roberts Company?

a.$900 (U)

b.$900 (F)

c.$1,950 (F)

d.$2,850 (F)

 

 

 

50.During August, 10,000 units were produced. The standard quantity of material allowed per unit was 10 kg at a standard cost of $3 per kilogram. Suppose the company had an unfavourable usage variance of $18,750 for August. What would have been the actual quantity of materials used?

a.23,438 kg

b.31,875 kg

c.93,750 kg

d.106,250 kg

Mar 13 2020 View more View Less

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