Direct Materials Information about Clearwater Company’s direct materials cost follows: Standard price per materials gram $20 Actual quantity used 900 grams Standard quantity allowed for production 950 grams Price variance $7,200 F Required What was the actual purchase price per gram?

Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Edition 3ISBN: 0073527114

Edition 3ISBN: 0073527114

Exercise 49

Direct Materials

Information about Clearwater Company’s direct materials cost follows:

Standard price per materials gram	$20
Actual quantity used	900	grams
Standard quantity allowed for production	950	grams
Price variance	$7,200	F

Required

What was the actual purchase price per gram?

Explanation

Verified

Calculation of the purchase price The va ...