Chapter 4, Problem 4P

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What is the amount of net sales from the transactions?

I need help with this general accounting question using the proper accounting approach.

Solve with explanation and accounting question

The standard cost of Wayfarer Boots includes 4 units of direct materials at $11.50 per unit. During August, the company buys 35,000 units of direct materials at $10.80 and uses those materials to produce 8,000 units. Compute the total, price, and quantity variances for materials. Need help

The standard cost of Wayfarer Boots includes 4 units of direct materials at $11.50 per unit. During August, the company buys 35,000 units of direct materials at $10.80 and uses those materials to produce 8,000 units. Compute the total, price, and quantity variances for materials.

Can you explain the correct methodology to solve this general accounting problem?

Total costs were $82,500 when 30,000 units were produced and $102,000 when 40,000 units were produced.

2 points