A bakery purchases $4,500 worth of flour for the month. However, only $4,200 worth of flour is actually used in making bread. If the cost of flour per loaf is $2.10, and the cost of flour supplied per loaf is $2.25, what is the cost of unused capacity?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 3Q: Chocos Chocolates incurs these costs for the month: Â What is the conversion cost?
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A bakery purchases $4,500 worth of flour for the month.
However, only $4,200 worth of flour is actually used in
making bread. If the cost of flour per loaf is $2.10, and
the cost of flour supplied per loaf is $2.25, what is the
cost of unused capacity?
Transcribed Image Text:A bakery purchases $4,500 worth of flour for the month. However, only $4,200 worth of flour is actually used in making bread. If the cost of flour per loaf is $2.10, and the cost of flour supplied per loaf is $2.25, what is the cost of unused capacity?
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