Pardee, Inc

question 31

Multiple Choice

Pardee, Inc. 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: Efficiency variance $4,500 Unfavourable
Standard price $10 per unit
Actual units purchased 9,000
Inventory decrease 1,000 units
Budget variance $900 Favourable
The actual direct materials price paid per unit was:

• A)$9.60
• B)$9.40
• C)$10.00
• D)$10.60

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Definitions:

Voting Shares

Shares that give the shareholder the right to vote on important issues such as electing directors and approving mergers.

Credit Balance

A situation in an account where the amount of credits exceeds the amount of debits, indicating that money is owed to the account holder.

Common Stock

Equity securities that represent ownership in a corporation, with voting rights and potential for dividends.

Consolidated Equipment

Assets that are combined from different departments or subsidiaries within a company for reporting purposes, often in the context of financial statements.