Question

Alexander Products manufactures dental equipment and uses a standard cost system. A new product (HV65) that is being introduced requires a particular type of stainless steel. Alexander purchased a quantity of this stainless steel (in meters). The following data summarize the operations regarding the purchase and use of this new stainless steel.
Actual price..................... $ 6.20 per meter
Actual number of meters used ............. 8,500 meters
Price variance..................... $ 2,000 U
Raw material variance.................. $ 3,000 U
Ending raw material inventory .............. $ 9,000
Standard quantity given the number of HV65 produced.... 8,000 meters
Amount of stainless steel in work in process inventory .... $ 48,000

Required:
Calculate the number of meters of stainless steel purchased and the standard price per meter of the stainless steel Alexander used in its standard cost system.



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  • CreatedDecember 15, 2014
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