rtment of Jacobs Company were $3 e and July, respectively. The numbe June and July was 4,000 and 4,25 ich of the following best describes

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The costs of materials consumed in producing good units in the
Production Department of Jacobs Company were $38,000 and
$39,125 for June and July, respectively. The number of equivalent
units produced in June and July was 4,000 and 4,250,
respectively. Which of the following best describes the change in
the cost of materials between the two months?
Oa. The cost of materials increased by $1,125, indicating an unfavorable
change.
Ob. The cost of materials decreased by $0.29 per unit, indicating an
improvement.
C.
The cost of materials increased by $0.88 per unit, indicating an
unfavorable change.
d. The cost of materials increased by $0.28 per unit, indicating an
unfavorable change
Transcribed Image Text:The costs of materials consumed in producing good units in the Production Department of Jacobs Company were $38,000 and $39,125 for June and July, respectively. The number of equivalent units produced in June and July was 4,000 and 4,250, respectively. Which of the following best describes the change in the cost of materials between the two months? Oa. The cost of materials increased by $1,125, indicating an unfavorable change. Ob. The cost of materials decreased by $0.29 per unit, indicating an improvement. C. The cost of materials increased by $0.88 per unit, indicating an unfavorable change. d. The cost of materials increased by $0.28 per unit, indicating an unfavorable change
Expert Solution
Step 1
  June July Difference
Cost of materials  $      38,000  $      39,125  $      -1,125
Equivalent Units    4,000     4,250  
Cost per equivalent unit  $          9.50  $          9.21  $         0.29
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