Question
154. On February 15, Jewel Company buys 6,500 shares of Marcelo Corp. common stock at $28.68 per share plus a brokerage fee of $475. The
154. On February 15, Jewel Company buys 6,500 shares of Marcelo Corp. common stock at $28.68 per share plus a brokerage fee of $475. The stock is classified as long-term available-for-sale securities. This is the companys first and only investment in available-for-sale securities. On March 15, Marcelo declares a dividend of $1.30 per share payable to stockholders of record on April 15. Jewel received the dividend on April 15 and ultimately sells half of the Marcelo stock on November 17 of the current year for $29.45 per share less a brokerage fee of $325. The journal entry to record the purchase on February 15 is:
Multiple Choice
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Debit Long-Term Investments-Trading $186,895; credit Cash $186,895.
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Debit Long-Term Investments-Trading $186,420; credit Cash $186,420.
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Debit Long-Term Investments-HTM $191,425; credit cash $191,425.
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Debit Long-Term Investments-AFS $186,420; credit Cash $186,420.
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Debit Long-Term Investments-AFS $186,895; credit Cash $186,895.
180. A company uses the following standard costs to produce a single unit of output.
Direct materials | 7 pounds at $0.80 per pound | = | $ | 5.60 | |
Direct labor | 0.2 hour at $10.00 per hour | = | $ | 2.00 | |
Manufacturing overhead | 0.2 hour at $3.20 per hour | = | $ | 0.64 | |
During the latest month, the company purchased and used 66,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $17,860 based on 1,880 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $3,400 and fixed manufacturing overhead incurred was $13,000. Based on this information, the total direct materials cost variance for the month was:
Multiple Choice
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$3,200 favorable
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$13,200 unfavorable
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$13,200 favorable
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$10,000 favorable
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$10,000 unfavorable
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