Bohon Corporation Manufactures One Product

question 13

Multiple Choice

Bohon Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product contains the following information concerning direct materials:
During the year, the company completed the following transactions concerning direct materials:
a. Purchased 19,700 pounds of raw material at a price of $4.70 per pound.
b. Used 18,500 pounds of the raw material to produce 18,400 units of work in process.
The company calculated the following direct materials variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

-When recording the raw materials purchases in transaction (a) above,the Cash account will increase (decrease) by:

• A) ($92,590)
• B) ($108,350)
• C) $108,350
• D) $92,590

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Definitions:

Permeable

A characteristic of materials that allows liquids or gases to pass through them, often referring to the selective permeability of biological membranes to certain substances.

Efferent Arterioles

Small blood vessels that carry blood away from the glomeruli of the kidney.

Peritubular Capillaries

Tiny blood vessels that travel alongside nephrons allowing reabsorption and secretion between blood and the inner lumen of the nephron.

Bowman's Capsule

A structure in the kidneys that encases the glomerulus and is involved in the filtration process of blood to form urine.