Question

QUESTION 29

1. Dek Inc. is a manufacturing firm. When direct materials are issued to production, which of the following accounts should be debited?

   		work-in-process inventory
   		raw materials inventory
   		accounts payable
   		finished goods inventory

4 points   

QUESTION 30

1. Which of the following is not a category used to classify measures in a traditional balanced scorecard?

   		Operating Performance
   		Internal Business Processes
   		Learning and Growth
   		Customer

4 points   

QUESTION 31

1. Bear Company has set the following standards for the production of one unit of output: Direct labor: 4 hours at $7.00 per hour = $28 per unit. During June, actual production amounted to 420 units of output. Actual direct labor hours worked were 1,720 hours and total direct labor costs were $12,212. The labor efficiency variance for June is:

   		$ 452 F
   		$1,680 U
   		$ 280 U
   		$ 284 U

   QUESTION 33

2. G3 Company’s cash budget for March shows cash available of $60,000 and cash payments of $83,200. The firm can only borrow in $1,000 increments and must maintain a minimum cash balance of $10,000. Budgeted borrowing for March will be:

   		$24,000
   		$34,000
   		$10,000
   		$94,000

   QUESTION 34

3. A company produces bottles of flavored apple cider. The standard materials cost for each bottle is 8 ounces of apple juice with a standard price of $0.20 per ounce. In October the firm produced 50,000 bottles of flavored cider. In October, 500,000 ounces of juice were purchased at a cost of $0.25 per ounce and 420,000 ounces were used for production. The materials price variance for the month of October is:

   		$21,000 unfavorable.
   		$ 5,000 unfavorable.
   		$25,000 unfavorable.
   		$ 4,000 unfavorable.

Answer 1

Solution:-

QUESTION 29 Dek Inc. is a manufacturing firm. When direct materials are issued to production, which of the following accounts should be debited:-

work-in-process inventory

Explanation:-

Journal entry would be as follows:-

Account titles and explanation	Debit	Credit
Work-in-process inventory	XXX
Raw Material inventory		XXX

QUESTION 30 Which of the following is not a category used to classify measures in a traditional balanced scorecard:-

Customer

QUESTION 31 Bear Company has set the following standards for the production of one unit of output: Direct labor: 4 hours at $7.00 per hour = $28 per unit. During June, actual production amounted to 420 units of output. Actual direct labor hours worked were 1,720 hours and total direct labor costs were $12,212. The labor efficiency variance for June is:

$280 U

Explanation:-

Labor efficiency variance = (Actual hours - Standard hours) * Standard rate

= (1,720 - 1,680) * $7.00

= 280 U

QUESTION 33 G3 Company’s cash budget for March shows cash available of $60,000 and cash payments of $83,200. The firm can only borrow in $1,000 increments and must maintain a minimum cash balance of $10,000. Budgeted borrowing for March will be:-

$34,000

Explanation:-

Particulars	Amount
Cash avaialble	60,000
Less Cash payments	(83,200)
Balance	(23,200)
Borrowing (23,200 + 10,000) rounded to 1,000	34,000
Ending cash balance	10,800

A company produces bottles of flavored apple cider. The standard materials cost for each bottle is 8 ounces of apple juice with a standard price of $0.20 per ounce. In October the firm produced 50,000 bottles of flavored cider. In October, 500,000 ounces of juice were purchased at a cost of $0.25 per ounce and 420,000 ounces were used for production. The materials price variance for the month of October is:-

$21,000 unfavorable

Explanation:-

Material price variance = (Actual price - Standard price) x Actual quantity used

= (0.25 - 0.20) * 420,000

= $21,000 U

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