Juliano Corporation Uses a Standard Cost System in Which Inventories

question 26

Multiple Choice

Juliano 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 standard cost card for the company's only product is as follows: During the year, the company purchased 29,700 pounds of raw material at a price of $5.20 per pound and used 25,700 pounds of the raw material to produce 17,200 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 PP&E (net) .All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.

When the raw materials used in production are recorded, which of the following entries will be made?

• A)$600 in the Materials Price Variance column
• B)$600 in the Materials Quantity Variance column
• C)($600)in the Materials Price Variance column
• D)($600)in the Materials Quantity Variance column

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Definitions:

Employees

Individuals who are hired by an employer to perform specific duties and tasks in exchange for compensation.

Work Arrival

The point in time when an individual presents themselves for their employment duties.

Departure Times

Specifically planned or scheduled times at which something or someone departs or leaves a place.

Flex-Time

A flexible work arrangement that allows employees to alter their start and end times, typically within a set framework.