Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 11, Problem 11.21E
Lopez Company uses a
Instructions
Answer the following questions.
(a) Materials Price Variance shows a $2,000 unfavorable balance. Accounts Payable shows $138,000 of raw materials purchases. What was the amount debited to Raw Materials Inventory for raw materials purchased?
(b) Materials Ouantity Variance shows a $3,000 favorable balance. Raw Materials Inventory shows a zero balance. What was the amount debited to Work in Process Inventory for direct materials used?
(c) Labor Price Variance shows a $1,500 favorable balance. Factory Labor shows a debit of $145,000 for wages incurred. What was the amount credited to Factory Wages Payable?
(d) Factory Labor shows a credit of $145,000 for direct labor used. Labor Ouantity Variance shows a $900 favorable balance. What was the amount debited to Work in Process for direct labor used?
(e)
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The following information was taken from the accounting records of Elliott Manufacturing Corporation. Unfortunately, some of the data were destroyed by a computer malfunction.
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Sales Revenue
$ 60,250
Finished Goods Inventory, Beginning
9,750
Finished Goods Inventory, Ending
6,600
Cost of Goods Sold
?
Gross Margin
26,950
Direct Materials Used
10,450
Selling and Administrative Expense
?
Operating Income
14,600
Work-in-Process Inventory, Beginning
?
Work-in-Process Inventory, Ending
5,450
Direct Labor Used
9,225
Factory Overhead
12,300
Total Manufacturing Cost
?
Cost of Goods Manufactured
?
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Cost of goods sold is calculated to be:
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Multiple Choice
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$32,300.
Â
$30,150.
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$27,300.
Â
$33,300.
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$38,300.
MKD Company's quality cost report is to be based on the following data:
3,550,000
Test and inspection of incoming materials
Supplies used in testing and inspection
2,550,000
Re-entering data because of keying errors
Statistical process control activities
Technical support provided to suppliers
3,000,000
4,100,000
4,550,000
Disposal of defective products
Lost sales due to poor quality
3,000,000
4,350,000
Net cost of crap
4,250,000
Warranty repairs and replacements
3,500,000
Required:
Prepare a Quality Cost Report in good from with separate sections for prevention costs, appraisal
costs, internal failure costs, and external failure costs
The following information was taken from the accounting records of Elliott Manufacturing Corporation. Unfortunately, some of the data were destroyed by a computer malfunction.
Â
Sales Revenue
$ 58,000
Finished Goods Inventory, Beginning
9,000
Finished Goods Inventory, Ending
6,000
Cost of Goods Sold
?
Gross Margin
25,000
Direct Materials Used
10,000
Selling and Administrative Expense
?
Operating Income
14,000
Work-in-Process Inventory, Beginning
?
Work-in-Process Inventory, Ending
5,000
Direct Labor Used
9,000
Factory Overhead
12,000
Total Manufacturing Cost
?
Cost of Goods Manufactured
?
Â
Selling and administrative expenses are calculated to be:
Â
Multiple Choice
Â
$4,000.
Â
$9,000.
Â
$11,000.
Â
$12,000.
Â
$16,000.
Chapter 11 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 11 - (a) Standard costs are the expected total cost of...Ch. 11 - (a) Explain the similarities and differences...Ch. 11 - Standard costs facilitate management planning....Ch. 11 - Standard costs facilitate management planning....Ch. 11 - Prob. 5QCh. 11 - What factors should be considered in setting (a)...Ch. 11 - The objective in setting the direct labor quantity...Ch. 11 - How is the predetermined overhead rate determined...Ch. 11 - What is the difference between a favorable cost...Ch. 11 - In each of the following formulas, supply the...
Ch. 11 - In the direct labor variance matrix, there are...Ch. 11 - Mikan Company's standard predetermined overhead...Ch. 11 - How often should variances be reported to...Ch. 11 - What circumstances may cause the purchasing...Ch. 11 - What are the four perspectives used in the...Ch. 11 - Prob. 16QCh. 11 - What are some examples of nonfinancial measures...Ch. 11 - (a) How are variances reported in income...Ch. 11 - (a) Explain the basic features of a standard cost...Ch. 11 - If the 9 per hour overhead rate in Question 12...Ch. 11 - What is the purpose of computing the overhead...Ch. 11 - Alma Ortiz does not understand why the overhead...Ch. 11 - John Hsu is attempting to outline the important...Ch. 11 - Lopez Company uses both standards and budgets. For...Ch. 11 - Tang Company accumulates the following data...Ch. 11 - Labor data for making one gallon of finished...Ch. 11 - Simba Company's standard materials cost per unit...Ch. 11 - Mordica Company's standard labor cost per unit of...Ch. 11 - In October, Pine Company reports 21,000 actual...Ch. 11 - Prob. 11.7BECh. 11 - Journalize the following transactions for Combs...Ch. 11 - Prob. 11.9BECh. 11 - Some overhead data for Pine Company are given in...Ch. 11 - Using the data in BE11-6 and BE11-10, compute the...Ch. 11 - Larkin Company accumulated the following standard...Ch. 11 - The standard cost of product 777 includes 2 units...Ch. 11 - The standard cost of product 5252 includes 1.9...Ch. 11 - Tropic Zone Corporation experienced the following...Ch. 11 - Parsons Company is planning to produce 2,000 units...Ch. 11 - Hank Itzek manufactures and sells homemade wine,...Ch. 11 - Stefani Company has gathered the following...Ch. 11 - Monte Services, Inc. is trying to establish the...Ch. 11 - The standard cost of Product B manufactured by...Ch. 11 - Lewis Company's standard labor cost of producing...Ch. 11 - Levine Inc., which produces a single product, has...Ch. 11 - The following direct materials and direct labor...Ch. 11 - You have been given the following information...Ch. 11 - During March 2017, Toby Tool Die Company worked...Ch. 11 - Manufacturing overhead data for the production of...Ch. 11 - Byrd Company produces one product, a putter called...Ch. 11 - Ceelo Company purchased (at a cost of 10,200) and...Ch. 11 - Picard Landscaping plants grass seed as the basic...Ch. 11 - Urban Corporation prepared the following variance...Ch. 11 - Fisk Company uses a standard cost accounting...Ch. 11 - The following is a list of terms related to...Ch. 11 - Indicate which of the four perspectives in the...Ch. 11 - Indicate which of the four perspectives in the...Ch. 11 - Vista Company installed a standard cost system on...Ch. 11 - Lopez Company uses a standard cost accounting...Ch. 11 - Data for Levine Inc. are given in E11-7....Ch. 11 - The information shown below was taken from the...Ch. 11 - Prob. 11.24ECh. 11 - Seacrest Company's overhead rate was based on...Ch. 11 - Rogen Corporation manufactures a single product....Ch. 11 - Ayala Corporation accumulates the following data...Ch. 11 - Rudd Clothiers is a small company that...Ch. 11 - Kansas Company uses a standard cost accounting...Ch. 11 - Hart Labs, Inc. provides mad cow disease testing...Ch. 11 - Jorgensen Corporation uses standard costs with its...Ch. 11 - Using the information in P11-1A, compute the...Ch. 11 - Using the information in P11-2A, compute the...Ch. 11 - Using the information in P11-3A, compute the...Ch. 11 - Using the information in P11-5A, compute the...Ch. 11 - CURRENT DESIGNS The executive learn at Current...Ch. 11 - Prob. 11.1BYPCh. 11 - Ana Carillo and Associates is a medium-sized...Ch. 11 - Glassmaster Company is organized as two divisions...Ch. 11 - Prob. 11.4BYPCh. 11 - Prob. 11.5BYPCh. 11 - Prob. 11.6BYPCh. 11 - At Symond Company production workers in the...Ch. 11 - Prob. 11.9BYP
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