San Diego State University Operations And Supply Chain Management Assignment Help - Inventory

Question - The Lahn Company produces and sells a single product. Standards have been established for the
product as follows:

Direct materials: 5 pounds @ $3.50 per pound = $17.50
Direct labor: 3 hours @ $5.50 per hour = $16.50

Actual cost and usage figures for the past month follow:
Units Produced 750
Direct Materials Used 4,000
Direct Materials Purchased(4500 lbs) $14,400 lbs
Direct Labor Cost(2,000 hrs) $11,200
Prepare journal entries to record:
A)The purchase of raw materials.
(Click to select)Materials quantity varianceMaterials price varianceAccounts
receivableAccounts payableRaw materials inventoryLabor rate varianceLabor efficiency
varianceWork in process
(Click to select)Materials price varianceLabor efficiency varianceLabo ...Read More r rate
varianceAccounts receivableRaw materials inventoryWork in processAccounts payable
(Click to select)Raw materials inventoryAccounts payableWork in processAccounts
receivableMaterials price varianceLabor efficiency varianceLabor rate variance


b.
The usage of raw materials in production.
(Click to select)Accounts payableLabor efficiency varianceMaterials quantity
varianceLabor rate varianceMaterials price varianceAccounts receivableWork in
process
(Click to select)Labor efficiency varianceMaterials price varianceWork in
processAccounts receivableAccounts payableLabor rate varianceMaterials quantity
variance
(Click to select)Accounts receivableAccounts payableMaterials price
varianceLabor rate varianceWork in processMaterials quantity varianceRaw
materials inventoryLabor efficiency variance
c. The incurrence of direct labor cost.

(Click to select)Accounts receivableLabor rate varianceLabor efficiency
varianceMaterials price varianceWork in processRaw materials
inventoryAccounts payable
(Click to select)Raw materials inventoryLabor rate varianceAccounts
payableLabor efficiency varianceWork in processAccounts

receivableMaterials price variance
(Click to select)Materials price varianceLabor rate varianceMaterials quantity
varianceAccounts payableAccounts receivableAccrued wages payableLabor
efficiency variance
(Click to select)Materials quantity varianceLabor rate varianceAccrued wages
payableAccounts payableMaterials price varianceLabor efficiency
varianceAccounts receivable ...Read Less

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