Kilo Company uses a standard costing system that allows 2.0 pounds of direct materials for one finished unit of product. During July, the company purchased 45,000 pounds of direct materials for $351,000, and manufactured 12,500 finished units. The standard direct materials cost allowed for the units manufactured is $187,500. The performance report shows that Kilo has an unfavorable direct materials usage variance of $7,500. Also, the company records any price variance for materials at time of purchase. The direct materials purchase-price variance in July was:

Kilo Company uses a standard costing system that allows 2.0 pounds of direct materials for one finished unit of product. During July, the company purchased 45,000 pounds of direct materials for $351,000, and manufactured 12,500 finished units. The standard direct materials cost allowed for the units manufactured is $187,500. The performance report shows that Kilo has an unfavorable direct materials usage variance of $7,500. Also, the company records any price variance for materials at time of purchase. The direct materials purchase-price variance in July was:

Name: Kilo Company uses a standard costing system that allows 2.0 pounds of
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Description: Kilo Company uses a standard costing system that allows 2.0 pounds of direct materials for onefinished unit of product. During July, the company purchased 45,000 pounds of directmaterials for $351,000, and manufactured 12,500 finished units. The sta

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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