Appendix 9B - Appendix 9B - Journal Entries to Record...

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Unformatted text preview: Appendix 9B - Journal Entries to Record Variances Appendix 9B Journal Entries to Record Variances True / False Questions 1. A favorable labor efficiency variance would result in a credit balance in the labor efficiency variance account. True False 2. A favorable materials quantity variance would appear as a debit in a journal entry. True False Multiple Choice Questions 3. When the actual price paid on credit for a raw material is less than its standard price, the journal entry would include: A. Debit to Raw Materials; Credit to Materials Price Variance B. Debit to Accounts Payable; Credit to Materials Price Variance C. Debit to Raw Materials; Debit to Materials Price Variance D. Debit to Accounts Payable; Debit to Materials Price Variance 4. When the actual amount of a raw material used in production is less than the standard amount allowed for the actual output, the journal entry would include: A. Debit to Raw Materials; Credit to Materials Quantity Variance B. Debit to Work-In-Process; Credit to Materials Quantity Variance C. Debit to Raw Materials; Debit to Materials Quantity Variance D. Debit to Work-In-Process; Debit to Materials Quantity Variance Appendix 9B-1 Appendix 9B - Journal Entries to Record Variances 5. Drake Company purchased materials on account. The entry to record the purchase of materials having a standard cost of $1.50 per pound from a supplier at $1.60 per pound would include a: A. credit to Raw Materials Inventory. B. debit to Work in Process. C. credit to Materials Price Variance. D. debit to Materials Price Variance. 6. When the actual wage rate paid to direct labor workers is less than the standard wage rate, the journal entry would include: A. Credit to Wages Payable; Credit to Labor Rate Variance B. Credit to Work-In-Process; Credit to Labor Rate Variance C. Credit to Wages Payable; Debit to Labor Rate Variance D. Credit to Work-In-Process; Debit to Labor Rate Variance 7. When the actual direct labor-hours are less than the standard direct labor-hours allowed for the actual output of the period, the journal entry would include: A. Credit to Wages Payable; Credit to Labor Efficiency Variance B. Credit to Work-In-Process; Credit to Labor Efficiency Variance C. Credit to Wages Payable; Debit to Labor Efficiency Variance D. Credit to Work-In-Process; Debit to Labor Efficiency Variance Appendix 9B-2 Appendix 9B - Journal Entries to Record Variances 8. Which of the following entries would correctly record the charging of direct labor costs to Work in Process given an unfavorable labor efficiency variance and a favorable labor rate variance? A. A B. B C. C D. D 9. Lafaso Corporation has provided the following data concerning its direct labor costs for July: The Labor Rate Variance for July would be recorded as a: A. credit of $7,014....
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This note was uploaded on 05/03/2011 for the course ACC 1410 taught by Professor Bauser during the Spring '11 term at Marion Technical College.

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Appendix 9B - Appendix 9B - Journal Entries to Record...

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