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Question
Landlubber Company established a standard direct materials cost of 1.5 gallons at $2 per gallon for one unit of its product. During the past month, actual production was 6,500 units. The material quantity variance was $700 favorable and the material price variance was $470 unfavorable. The entry to charge Goods in Process Inventory for the standard material costs during the month and to record the direct material variances in the accounts would include:
A. A credit to Goods in Process for $19,270.
B. A debit to Raw Materials for $19,500.
C. A debit to Direct Material Price Variance for $470.
D. A debit to Direct Material Quantity Variance for $700.
E. A credit to Goods in Process for $19,500.
Answer
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Related questions
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Q:
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Q:
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Q:
Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?
A. Total cost times markup percentage.
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Q:
Capital budgeting decisions are generally based on:
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B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.