Accounting Price Quantity And Cost Variance Homework Help
- November 1, 2017
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- Category: Accounting QA
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1.What items appear on the merchandising company statements that don’t appear on the service company statements? Why is there a difference?
2.Prepare an adjusting entry for Dec 31, 2008 for prepaid insurance from following :
An analysis of the company’s insurance policies provided these facts: Policy A Purchased on April 1, 2007 for 24 month at $11400. Policy B Purchased on April 1, 2008 for 36 months at $10200. Policy C Purchased on August 1, 2008 for 12 months at $9000. The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.)
3.The liabilities of Acosta Corporation equal one-third of the total assets. And stockholders equity is $160,000. What is the amount of the liabilities.
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4.If you purchase property and contract a company to construct a building. How would you enter the transaction? I know you would credit accounts payable to the company, but what do you debit?
5.Diamond Company produces a chair that requires 5 yds. of material per unit. The standard price of one yard of material is $7.50. During the month, 8,500 chairs were manufactured, using 43,700 yards at a cost of $7.60. Determine the
(a) price variance,
(b) quantity variance, and
(c) cost variance.
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