Tulip IncUses Standard Costing,and Its Manufacturing Standards Are as Follows: 2

question 53

Multiple Choice

Tulip Inc.uses standard costing,and its manufacturing standards are as follows: 2 pounds of materials at $13 per pound,and 3 hours of labor at $10 per hour.Budgeted production last period was 5,000 units,and actual production and sales was 4,800 units.Last period,Tulip purchased and used 9,800 pounds of materials for $135,000,and used 15,000 labor hours,costing $145,000.What is the journal entry to record the transfer of materials to the Cost of Goods Sold account?

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Definitions:

S Corporation

A special designation that allows small businesses to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.

S Corporation

A specific kind of corporation in the U.S. that conforms to certain Internal Revenue Code criteria, which permits it to distribute income directly to its shareholders, thereby bypassing the double taxation issue.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction, often seen in international business where income is taxed in both the source and the resident country.

Secured Bond

A bond backed by collateral to decrease the risk of default.