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Gipple Corporation makes a product that uses a material with the quantity standard of 7.9 grams per unit of output and the price standard of $6.60 per gram. In January the company produced 4,000 units using 25,470 grams of the direct material. During the month the company purchased 28,000 grams of the direct material at $6.80 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice $6,320 F $5,600 U $6,320 U

Gipple Corporation makes a product that uses a material with the quantity standard of 7.9 grams per unit of output and the price standard of $6.60 per gram. In January the company produced 4,000 units using 25,470 grams of the direct material. During the month the company purchased 28,000 grams of the direct material at $6.80 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice $6,320 F $5,600 U $6,320 U

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gipple Corporation makes a product that uses a material with the quantity standard of 7.9 grams per unit of output and the price standard of $6.60 per gram. In January the company produced 4,000 units using 25,470 grams of the direct material. During the month the company purchased 28,000 grams of the direct material at $6.80 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice $6,320 F $5,600 U $6,320 U $5,600 F
Transcribed Image Text:Gipple Corporation makes a product that uses a material with the quantity standard of 7.9 grams per unit of output and the price standard of $6.60 per gram. In January the company produced 4,000 units using 25,470 grams of the direct material. During the month the company purchased 28,000 grams of the direct material at $6.80 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice $6,320 F $5,600 U $6,320 U $5,600 F
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