Figure 10-9

question 77

Multiple Choice

Figure 10-9. James Company manufactures t-shirts.During the year,it manufactured 250,000 t-shirts,using 2 hours of direct labor at a rate of $8.50 per hour.The materials and labor standards for manufacturing the t-shirts are:
It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts.
Refer to Figure 10-9.What is the entry to close the variances of labor and materials?

• A)Materials Price Variance 700,000 Materials Usage Variance 300,000 Labor Efficiency Variance 800,000 Cost of Goods Sold 1,800,000 Cost of Goods Sold 250,000 Labor Rate Variance 250,000
• B)Materials Price Variance 750,000 Materials Usage Variance 250,000 Labor Efficiency Variance 850,000 Cost of Goods Sold 1,850,000 Cost of Goods Sold 300,000 Labor Rate Variance 300,000
• C)Cost of Goods Sold 1,800,000 Materials Price Variance 700,000 Materials Usage Variance 300,000 Labor Efficiency Variance 800,000 Labor Rate Variance 250,000 Cost of Goods Sold 250,000
• D)Cost of Goods Sold 1,850,000 Materials Price Variance 750,000 Materials Usage Variance 250,000 Labor Efficiency Variance 850,000 Labor Rate Variance 300,000 Cost of Goods Sold 300,000

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Definitions:

Sin

An act viewed as a transgression against divine law or moral principles, often rooted in religious belief.

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A chronic infectious disease caused by Mycobacterium leprae, characterized by the development of disfiguring skin sores and nerve damage in the arms, legs, and skin areas around the body.

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Genetic Testing

Tests on blood and other tissue to identify genetic disorders and susceptibilities to inherited diseases, assisting in disease prevention, diagnosis, and treatment planning.