In Command Ltd Completed Operations for the Week and the Accountant

question 37

Multiple Choice

In Command Ltd completed operations for the week and the accountant was preparing to make journal entries necessary to prepare a set of interim financial statements. Unfortunately, he discovered some of the data concerning direct materials had been lost. He was able to find the following: $$\begin{array} { l l } \text { Efficiency variance } & \$ 9,000 \text { Unfavourable } \\\text { Stardard price } & \$ 10 \text { per unit } \\\text { Actual units purchased } & 18,000 \\\text { Inventory decrease } & 1,000 \text { units } \\\text { Budget variarice } & \$ 1,800 \text { Favourable }\end{array}$$ The standard quantity of direct materials allowed for the month was:

• A) 17,100
• B) 9,000
• C) 17,000
• D) 9,550

---

Definitions:

Profits and Losses

Financial results of a company's operations, with profits indicating net income and losses indicating net expenses exceeding revenues.

Admitted

The term is commonly used in insurance, indicating an insurer is licensed to operate in a particular state. Otherwise, NO.

Liquidate a Partnership

The process of dissolving a partnership by selling its assets, paying off debts, and distributing the remaining assets to partners.

Capital

represents the financial resources that are used by a business to fund its operations and growth, typically including funds contributed by owners or generated through profit.