Lisser Corporation Uses a Standard Cost System in Which Inventories

question 41

Multiple Choice

Lisser Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. The standards for direct materials for the company's only product specify 2.7 liters per unit at $7.50 per liter or $20.25 per unit. During the year, the company purchased 67,300 liters of raw material at a price of $8.00 per liter and used 61,660 liters of the raw material to produce 22,800 units of work in process.Assume that all transactions are recorded on a worksheet as shown in the text. On the left-hand side of the equals sign in the worksheet are columns for Cash, Raw Materials, Work in Process, Finished Goods, and Property, Plant, and Equipment (net) . All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.When recording the raw materials used in production, the Raw Materials inventory account will increase (decrease) by:

• A) ($493,280)
• B) $493,280
• C) $462,450
• D) ($462,450)

Distinguish between various budget types and their purposes.

Identify and categorize personal and employment records.

Calculate net worth and understand its importance in personal finance.

Understand and calculate savings ratios for personal financial analysis.

---

Definitions:

Sorting

The process of arranging items in a systematic order or classifying them into categories.

Characteristics

Traits or features that distinguish someone or something from others.

Hostile Competition

A form of rivalry where the parties involved engage in aggressive and antagonistic interactions beyond healthy competition.

Non-prejudiced People

Individuals who do not harbor preconceived judgments or biases against others based on superficial characteristics such as race, gender, or ethnicity.