Question Details

Bok Company's output for the current period 




1. When standard manufacturing costs are recorded in the accounts and the cost variances are immaterial at
the end of the accounting period, the cost variances should be:
A. Carried forward to the next accounting period.
B. Allocated between cost of goods sold, finished goods, and goods in process.
C. Closed to cost of goods sold.
D. Written off as a selling expense.
E. Ignored.
2. 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 debit to Goods in Process for $19,500.
B. A credit to Raw Materials for $19,270.
C. A debit to Direct Material Price Variance for $470.
D. A credit to Direct Material Quantity Variance for $700.
E. All of these.
3. When recording the journal entry for labor, the Goods in Process Inventory account is
A. Debited for standard labor cost.
B. Debited for actual labor cost.
C. Credited for standard labor cost.
D. Credited for actual labor cost.
E. Not used.
4. For the current period, Boggs Company's manufacturing operations yield a $5,250 unfavorable price
variance on its direct materials usage. The actual price per pound is $56.50 and the standard price per
pound is $55.00. How many pounds of material are used in the current period?
A. 5,393.
B. 5,110.
C. 3,500.
D. 3,750.
E. 4,000.
5. Bok Company's output for the current period was assigned a $200,000 standard direct materials cost. The
direct materials variances included a $5,000 favorable price variance and a $3,000 unfavorable quantity
variance. What is the actual total direct materials cost for the current period?
A. $208,000.
B. $198,000.
C. $202,000.
D. $192,000.
E. $205,000.




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