Fundamental Managerial Accounting Concepts
Fundamental Managerial Accounting Concepts
8th Edition
ISBN: 9781259569197
Author: Thomas P Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip R Olds
Publisher: McGraw-Hill Education
Question
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Chapter 11, Problem 13ESB

a.

To determine

The amount of raw materials used.

b.

To determine

The amount of cost of goods manufactured.

c.

To determine

The amount of gross margin.

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What is the budgeted total cost of direct materials purchases?
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During September, the assembly department completed 10,500 units of a product that had a standard materials cost of 3.0 square feet per unit at $2.40 per square foot. The actual materials purchased consisted of 22,000 square feet at $2.60 per square foot, for a total cost of $57,200. The actual material used during this period was 25,500 square feet. Compute the materials price variance and materials usage variance.

Chapter 11 Solutions

Fundamental Managerial Accounting Concepts

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