If 10,000 Pounds of Direct Materials Are Purchased for $9,300

question 155

Short Answer

If 10,000 pounds of direct materials are purchased for $9,300 on account and the standard cost is $.90 per pound, the journal entry to record the purchase is $\begin{array}{lr}\text {a. Raw Materials Inventory }&9,300\\\quad\text { Accounts Payable}&&9,300\\\text {b. Work In Process Inventory }&9,300\\\quad\text {Accounts Payable }&&9,000\\\quad\text { Materials Quantity Variance}&&300\\\text {c. Raw Materials Inventory }&9,300\\\quad\text { Accounts Payable}&&9,000\\\quad\text { Materials Price Variance}&&300\\\text {d. Raw Materials Inventory }&9,000\\\quad\text { Materials Price Variance}&300\\\quad\text { Accounts Pavable}&&9,300\\\end{array}$

Comprehend the structure and purpose of responsibility accounting performance reports.

Calculate the allocation of joint costs using the value basis method.

Recognize the distinction between controllable and uncontrollable costs in management reporting.

Identify the types of costs associated with joint production processes.

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Definitions:

Lack Of Control

A state or condition where an individual feels they have no influence or command over situations or outcomes.

Intellectual Demand

The cognitive effort required to perform a task or understand a concept, typically associated with jobs or educational activities.

Social Network

A structure of individuals or organizations interconnected through various forms of relationships such as friendship, family, common interest, or professional activities.

Co-Workers

Individuals with whom one shares a workplace environment, typically involved in similar tasks or objectives.