Ingredient A12H is a material used to make Calvin Corporation's major product. The standard cost of Ingredient A12H is $41.00 per ounce and the standard quantity is 21.8 ounces per unit of output. Data concerning the compound for October appear below: Cost of material purchased in October$41.10per ounce Material purchased in October 3,200ounces Material used in production in October 2,300ounces Actual output in October 780units 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: Multiple Choice $131,200. $94,300. $131,520. $697,164.

The objective of the question is to calculate the total debit to the Materials Inventory account for…

Answered: Ingredient A12H is a material used to…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 21BEA

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Question

Ingredient A12H is a material used to make Calvin Corporation's major product. The standard cost of Ingredient A12H is $41.00 per ounce and the standard quantity is 21.8 ounces per unit of output. Data concerning the compound for October appear below:


Cost of material purchased in October	$	41.10	per ounce
Material purchased in October		3,200	ounces
Material used in production in October		2,300	ounces
Actual output in October		780	units

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:

Multiple Choice

$131,200.
$94,300.
$131,520.
$697,164.

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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