EBOOK COST MANAGEMENT
EBOOK COST MANAGEMENT
8th Edition
ISBN: 9781307659184
Author: BLOCHER
Publisher: MCG
Question
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Chapter 11, Problem 32P

1.

To determine

Calculate the minimum number of units that company S would sell in order to justify the further processing of GR37.

2.

To determine

Calculate the expected operating income for the given scenarios.

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Please provide the accurate answer to this general accounting problem using appropriate methods.
Paramount Company uses a standard costing system that allows 2.5 pounds of direct materials for one finished unit. During August, the company purchased 35,000 pounds of direct materials for $175,000 and manufactured 13,200 finished units. The standard direct materials cost allowed for the units manufactured is $132,000. The performance report shows that Paramount has an unfavorable direct materials usage variance of $6,400. Also, the company records any price variance for materials at time of purchase. The number of pounds of direct materials used to produce August's output was__ pounds.
Solve this

Chapter 11 Solutions

EBOOK COST MANAGEMENT

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