Maurice Tutor

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Category > Accounting Posted 20 Aug 2017 My Price 6.00

Good Clean Fun Inc

Standard direct materials cost per unit from variance data

 

The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys:

 

Quantity of direct materials used                                                                       3,000 lbs.

 

Actual unit price of direct materials                                                         $5.50 per lb.

 

Units of finished product  manufactured                                                  1,400 units Standard direct materials per unit of finished  product                                                                                       2 lbs. Direct  materials  quantity variance—unfavorable                                                                                                       $1,000

 

Direct  materials  price variance—unfavorable                                                $1,500

 

 

 

Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month.

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Maurice Tutor
(5)
Status NEW Posted 20 Aug 2017 09:08 AM My Price 6.00

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