Ingredient A12H is a material used to make Calvin Corporation's major product. The standard cost of Ingredient A12H is $23.00 per ounce and the standard quantity is 3.8 ounces per unit of output. Data concerning the compound for October appear below:
$$\begin{array} { l r l }
\text { Cost of material purchased in October } & \$ 23.10 & \text { per ounce } \
\text { Material purchased in October } & 2,300 & \text { ounces } \
\text { Material used in production in October } & 2,120 & \text { ounces } \
\text { Actual output in October } & 600 & \text { units }
\end{array}$$
The material was purchased on account and Calvin Corporation uses a standard costing system.
-
The debit to the Materials Inventory account for October would total:
A) $52,900.
B) $52,440.
C) $48,760.
D) $53,130.

Question

Ingredient A12H is a material used to make Calvin Corporation's major product. The standard cost of Ingredient A12H is $23.00 per ounce and the standard quantity is 3.8 ounces per unit of output. Data concerning the compound for October appear below:
$$\begin{array} { l r l } 
\text { Cost of material purchased in October } & \$ 23.10 & \text { per ounce } \
\text { Material purchased in October } & 2,300 & \text { ounces } \
\text { Material used in production in October } & 2,120 & \text { ounces } \
\text { Actual output in October } & 600 & \text { units }
\end{array}$$
The material was purchased on account and Calvin Corporation uses a standard costing system.
-
The debit to the Materials Inventory account for October would total:
A) $52,900.
B) $52,440.
C) $48,760.
D) $53,130.

Quizplus · Accepted Answer

The standard cost of Ingredient A12H is $23.00 per ounce and the standard quantity is 3.8 ounces per unit of output. So, the standard cost of Ingredient A12H per unit of output is $23.00 x 3.8 = $87.40. The actual output in October was 600 units, so the standard cost of Ingredient A12H used in production in October is $87.40 x 600 = $52,440.

Ingredient A12H Is a Material Used to Make Calvin Corporation's