Bialas Corporation uses a standard cost system in which Inventories are recorded at their standard costs and any varlances are closed directly to Cost of Goods Sold. The standards for direct materials for the company's only product specify 1.6 liters per unit at $7.00 per liter or $11.20 per unit. During the year, the company purchased 36,400 liters of raw material at a price of $7.40 per liter and used 32,060 liters of the raw material to produce 20,100 units of work in process. Assume that all transactions are recorded on a worksheet as shown in the text. On the left-hand side of the equals sign in the worksheet are columns for Cash, Raw Materials, Work In Process, Finished Goods, and PP&E (net). All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings. When the purchase of raw materials is recorded, which of the following entries will be made? Multiple Choice () $14,560) in the Materials Quantity Varlance column O ($14.560) In the Materials Price Variance column $14.560 in the Materials Price Variance column o 0 $14.560 in the Materials Quantity Varlance column o Robnett 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 is as follows: Inputs Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit Standard Quantity or Hours 3.8 liters 0.60 hours 0.60 hours Standard Price or Standard Rate Cost $ 6.50 per liter $24.70 $18.00 per hour 10.80 $18.50 per hour 11.10 $46.60 During the year, the company completed the following transactions: a. Purchased 106,900 liters of raw material at a price of $6.80 per liter. b. Used 93.760 liters of the raw material to produce 24.700 units of work in pro 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. Raw Work in Cash Materials Process $1,110,000 $54,340 $0 Finished Goods $60,580 PP&E (net) = $616,800 = Materials Materials Price Quantity Variance Variance $0 $0 Labor Labor Rate Efficiency FOH Budget FOH Volume Retained Variance Variance Variance Variance Earnings $0 $0 $0 $0 $1,841,720 1/1 b. When the purchase of raw materials is recorded in transaction (a) above, which of the following entries will be made? Multiple Choice $32.070 in the Materials Price Variance column O ($32,070) in the Materials Quantity Varlance column 0 $32.070 in the Materials Quantity Varlance column Kilduff Corporation's balance sheet and Income statement appear below: Comparative Balance Sheet Ending Beginning Balance Balance $ 38 32 707 55 580 316 315 $512 $390 Assets: Cash and cash equivalents Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Total assets Liabilities and stockholders' equity: Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 64 41 180 282 $512 136 $390 $1,174 771 Income statement Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income Gain on sale of equipment Income before taxes Income taxes Net income $ 190 The company sold equipment for $19 that was originally purchased for $10 and that had accumulated depreciation of $5. The company paid a cash dividend of $44 and it did not issue any bonds payable or repurchase any of its own common stock. The net cash provided by (used in operating activities for the year was: 0 0 0 O $201 Cridberg Corporation's selling and administrative expenses for last year totaled $260,000. During the year the company's prepaid expense account balance increased by $18,000 and accrued liabilities decreased by $12,000. Depreciation for the year was $25,000. Based on this information, selling and administrative expenses adjusted to a cash basis under the direct method on the statement of cash flows would be: Multiple Choice $255,000 O $315,000 $205,000 $265,000