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What is the journal entry to record the issuance and usage of materials Work in Process

Refer to roofing company. What is the journal entry to record the issuance and usage of materials?

a.Work in Process                                                     18,900

Materials Usage Variance                                           675

Materials                                                                               19,575

b.Work in Process                                                     19,575

Materials Usage Variance                                    675

Materials                                                                               18,900

c.Work in Process                                                     24,500

Materials Usage Variance                                            875

Materials                                                                               25,375

d.Work in Process                                                      25,375

Materials Usage Variance                                                          875

Materials                                                                               24,500

 

 

 

82.Refer to roofing company. What is the journal entry to record the purchase of materials?

a.Materials                                                                   19,575

Materials Price Variance                                            5,800

Accounts Payable                                                                    25,375

b.Materials                                                                   24,500

Materials Price Variance                                                           5,600

Accounts Payable                                                                    18,900

c.Materials                                                                   18,900

Materials Price Variance                                             5,600

Accounts Payable                                                                    24,500

d.Materials                                                                    25,375

Materials Price Variance                                                           5,800

Accounts Payable                                                                    19,575

 

 

 

 

The Fantastic Tool Company (Mexico Division) produced 100,000 saw blades during the year. Each saw blade required two hours of labour at a rate of $5.50 per hour. However, the company’s standard labour rate is $5.00. Its labour efficiency variance was a favourable $55,000.

 

83.Refer to Fantastic Tool Company. What are Fantastic’s standard hours allowed for a volume of 100,000 blades?

a.189,000 hours

b.190,000 hours

c.210,000 hours

d.211,000 hours

 

 

 

84.Refer to Fantastic Tool Company. What is Fantastic’s labour rate variance?

a.$95,000 U

b.$96,875 U

c.$100,000 U

d.$105,500 U

 

 

 

85.Refer to Fantastic Tool Company. What is the journal entry to record both labour variances?

a.Work in Process                                                           1,055,000

Labour Rate Variance                                                     100,000

Labour Efficiency Variance                                                                  55,000

Accrued Payroll                                                                                1,100,000

b.Work in Process                                                           1,055,000

Labour Rate Variance                                                     105,500

Labour Efficiency Variance                                                                  55,000

Accrued Payroll                                                                               1,105,500

c.Work in Process                                                           1,055,000

Labour Rate Variance                                                        96,875

Labour Efficiency Variance                                                                  55,000

Accrued Payroll                                                                               1,096,875

d.Work in Process                                                           1,055,000

Labour Rate Variance                                                        95,000

Labour Efficiency Variance                                                                  55,000

Accrued Payroll                                                                               1,095,000

 

 

 

Hillandale Company manufactures overalls. During the year, it manufactured 125,000 overalls, using 2.9 hours of direct labour at a rate of $6.25 per hour. The materials and labour standards for manufacturing the overalls are as follows:

 

Direct materials (5 m of denim @ $2 per metre)$10

Direct labour (3 hours @ $6 per hour)18

 

Hillandale required 600,000 m at $1.95 per metre to make the 125,000 overalls.

 

86.Refer to Hillandale Company. What is Hillandale’s materials price variance?

a.$30,000 U

b.$30,000 F

c.$31,250 U

d.$31,250 F

 

 

 

87.Refer to Hillandale Company. What is Hillandale’s materials usage variance?

a.$48,750 U

b.$48,750 F

c.$50,000 U

d.$50,000 F

 

 

 

88.Refer to Hillandale Company. What is Hillandale’s labour rate variance?

a.$90,625 U

b.$90,625 F

c.$93,750 U

d.$93,750 F

 

 

 

89.Refer to Hillandale Company. What is Hillandale’s labour efficiency variance?

a.$75,000 U

b.$75,000 F

c.$78,125 U

d.$78,125 F

 

 

 

90.Refer to Hillandale Company. What is the entry to record the purchase of materials?

a.Materials                                                                  1,218,750

Materials Price Variance                                              31,250

Accounts Payable                                                                        1,250,000

b.Materials                                                                  1,170,000

Materials Price Variance                                               30,000

Accounts Payable                                                                        1,200,000

c.Materials                                                                   1,200,000

Materials Price Variance                                                                   30,000

Accounts Payable                                                                         1,170,000

d.Materials                                                                   1,250,000

Materials Price Variance                                                                   31,250

Accounts Payable                                                                         1,218,750

 

 

 

 

91.Refer to Hillandale Company. What is the entry to record the issuance and usage of materials?

a.Work in Process                                                            1,170,000

Materials Usage Variance                                                                              48,750

Materials                                                                                            1,218,750

b.Work in Process                                                            1,200,000

Materials Usage Variance                                                                              50,000

Materials                                                                                            1,250,000

c.Work in Process                                                            1,218,750

Materials Usage Variance                                                                       48,750

Materials                                                                                             1,170,000

d.Work in Process                                                            1,250,000

Materials Usage Variance                                                                        50,000

Materials                                                                                             1,200,000

 

 

 

92.Refer to Hillandale Company. What is the entry to record the direct labour variances?

a.Work in Process                                                              2,265,625

Labour Efficiency Variance                                                 75,000

Labour Rate Variance                                                                              90,625

Accrued Payroll                                                                                  2,250,000

b.Work in Process                                                              2,250,000

Labour Rate Variance                                                           90,625

Labour Efficiency Variance                                                                     75,000

Accrued Payroll                                                                                   2,265,625

c.Work in Process                                                              2,250,000

Labour Rate Variance                                                           93,750

Labour Efficiency Variance                                                                     78,125

Accrued Payroll                                                                                  2,265,625

d.Work in Process                                                               2,265,625

Labour Efficiency Variance                                                  78,125

Labour Rate Variance                                                                              93,750

Accrued Payroll                                                                                  2,250,000

 

 

 

93.Refer to Hillandale Company. What is the entry to close the variances of labour and materials?

a.Materials Price Variance                                                      30,000

Materials Usage Variance                                                    50,000

Labour Efficiency Variance                                                 75,000

Cost of Goods Sold                                                                             155,000

 

Cost of Goods Sold                                                               90,625

Labour Rate Variance                                                                            90,625

b.Materials Price Variance                                                      31,250

Materials Usage Variance                                                    48,750

Labour Efficiency Variance                                                 78,125

Cost of Goods Sold                                                                              158,125

 

Cost of Goods Sold                                                              93,750

Labour Rate Variance                                                                            93,750

c.Cost of Goods Sold                                                            155,000

Materials Price Variance                                                                        30,000

Materials Usage Variance                                                                      50,000

Labour Efficiency Variance                                                                   75,000

 

Labour Rate Variance                                                           90,625

Cost of Goods Sold                                                                                90,625

d.Cost of Goods Sold                                                             158,125

Materials Price Variance                                                                        31,250

Materials Usage Variance                                                                      48,750

Labour Efficiency Variance                                                                   78,125

 

Labour Rate Variance                                                           93,750

Cost of Goods Sold                                                                                 93,750

 

 

 

Lawn Professionals Corporation wants to produce a new lawnmower. The financial data is as follows:

 

Target price:$350

Target profit:$75

Estimated cost given current product and process designs:$300

 

Other information:

 

1.Through reverse engineering, Lawn Professionals found a design improvement that would save $20 per unit.

2.It also found that it could purchase a similar component of a different brand at a lower price, which would save $10 per unit.

 

 

94.Refer to Lawn Professionals Corporation. What is Lawn Professionals’s target cost?

a.$225

b.$275

c.$300

d.$350

 

 

 

95.Refer to Lawn Professionals Corporation. What is Lawn Professionals’s new expected profit?

a.$50

b.$75

c.$80

d.$105

Mar 13 2020 View more View Less

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