Machine Builders Incorporated adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials:(5 kilograms × $9 per kilogram) $ 45 Labor:(4 hours × $21 per hour) $ 84 All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July: In-process beginning inventory none In-process ending inventory—90% complete as to labor 1,000 units Units completed during the month 7,900 units Budgeted output 8,600 units Purchases of materials, in kilograms (AQ) 24,000 Total actual labor costs incurred $ 520,000 Direct labor hours worked (AQ) 27,000 hours Materials purchase-price variance $ 3,200 unfavorable Increase in materials inventory in July 1,900 kilograms Beginning inventory of materials 0 kilogram The actual total cost of direct materials used in production during July, to the nearest dollar, was: (Round your final calculation to 2 decimal places.) Multiple Choice $216,923. $213,923. $210,923. $196,073. $201,773.
Machine Builders Incorporated adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials:(5 kilograms × $9 per kilogram) $ 45 Labor:(4 hours × $21 per hour) $ 84 All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July: In-process beginning inventory none In-process ending inventory—90% complete as to labor 1,000 units Units completed during the month 7,900 units Budgeted output 8,600 units Purchases of materials, in kilograms (AQ) 24,000 Total actual labor costs incurred $ 520,000 Direct labor hours worked (AQ) 27,000 hours Materials purchase-price variance $ 3,200 unfavorable Increase in materials inventory in July 1,900 kilograms Beginning inventory of materials 0 kilogram The actual total cost of direct materials used in production during July, to the nearest dollar, was: (Round your final calculation to 2 decimal places.) Multiple Choice $216,923. $213,923. $210,923. $196,073. $201,773.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Q39
Machine Builders Incorporated adopted a
| Materials:(5 kilograms × $9 per kilogram) | $ 45 |
|---|---|
| Labor:(4 hours × $21 per hour) | $ 84 |
All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July:
| In-process beginning inventory | none | |
|---|---|---|
| In-process ending inventory—90% complete as to labor | 1,000 | units |
| Units completed during the month | 7,900 | units |
| Budgeted output | 8,600 | units |
| Purchases of materials, in kilograms (AQ) | 24,000 | |
| Total actual labor costs incurred | $ 520,000 | |
| Direct labor hours worked (AQ) | 27,000 | hours |
| Materials purchase-price variance | $ 3,200 | unfavorable |
| Increase in materials inventory in July | 1,900 | kilograms |
| Beginning inventory of materials | 0 | kilogram |
The actual total cost of direct materials used in production during July, to the nearest dollar, was: (Round your final calculation to 2 decimal places.)
Multiple Choice
-
$216,923.
-
$213,923.
-
$210,923.
-
$196,073.
-
$201,773.
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