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

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 8BE
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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
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