Malkovich Company Uses a Standard Costing System

question 87

Multiple Choice

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Standard price per lb. $18.00
Actual purchase price per lb. $16.50
Quantity purchased 3,100 lbs.
Quantity used 2,950 lbs.
Standard quantity allowed for actual output 3,000 lbs.
Actual output 1,000 units
Malkovich Company reports its material price variances at the time of purchase. What is the journal entry to record material purchases?

• A) Materials 55,800 Materials Price Variance 4,650
• Accounts Payable 51,150
• B) Accounts Payable 55,800 Materials 55,800
• C) Materials 55,800 Accounts Payable 55,800
• D) Materials 51,150 Materials Price Variance 4,650
• Accounts Payable 55,800

---

Definitions:

Speciation

Origin of new species due to the evolutionary process of descent with modification.

Genetic Drift

A mechanism of evolution that involves random changes in the frequency of alleles within a population over time.

Allele

Alternative form of a gene; alleles occur at the same locus on homologous chromosomes.

Bottleneck Effect

A sharp reduction in the size of a population due to environmental events or human activities, leading to a loss of genetic variation.