1.When the actual price charged for a raw material purchased on account exceeds

Question

1.When the actual price charged for a raw material purchased on account exceeds its standard price, the journal entry would include A) Credit to Accounts Payable; Debit to Materials Price Variance B) Credit to Raw Materials; Debit to Materials Price Variance C) Credit to Accounts Payable; Credit to Materials Price Variance D) none of these E) Credit to Raw Materials; Credit to Materials Price Variance 2.The Tyus Company has provided the following data for the month of July: raw materials, July 1 $15,000, July 31 $?; work in process, July 1 $12,000, July 31 $10,000; finished goods, July 1, $2,000, and July 31 $7,000. Other July information is as follows: sales, $100,000; direct labor costs, $8,000; manufacturing overhead costs, $10,000; selling expenses, $12,000; administrative expenses, $13,000; cost of goods manufactured, $30,000; raw materials purchases, $9,000.The net income was: A) none of these B) $35,000 C) $43,000 D) $52,000 E) $38,500 3.The Tyus Company has provided the following data for the month of July: raw materials, July 1 $15,000, July 31 $?; work in process, July 1 $12,000, July 31 $10,000; finished goods, July 1, $?, and July 31 $7,000. Other July information is as follows: sales, $100,000; direct labor costs, $8,000; manufacturing overhead costs, $10,000; selling expenses, $12,000; administrative expenses, $13,000; cost of goods manufactured, $30,000; raw materials purchases, $9,000.The ending raw materials inventory was: A) $14,000 B) $11,000 C) $16,000 D) $9,000 4.What effect would debit memos have on a bank account reconciliation? A) No effect on bank reconciliation B) Checkbook decrease C) Bank increase D) Bank decrease E) Checkbook increase 5.If overhead is over-applied the journal entry would include A) Finished Goods (Dr) B) Cost of Goods Manufactured (Dr) C) Work In Process (Cr) D) Overhead Control (Cr) E) Cost of Goods Sold (Cr) 6. Jeffs Corporation is developing direct labor standards. The basic direct labor wage rate is $14.00 per hour. Employment taxes are 11% of the basic wage rate. Fringe benefits are $3.24 per direct labor-hour. The standard rate per direct labor-hour should be: A) $14.00 B) $9.22 C) 18.78 D) none of these E) $4.78 Hope you guys can write down the step that how do u get the answer, so i can learn from it. Thank you so much for helping.

Explanation / Answer

1.C) Credit to Accounts Payable; Credit to Materials Price Variance 2.C) $43,000 3.B) $11,000 4.D) Bank decrease 5.E) Cost of Goods Sold (Cr) 6.B) $9.22

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