Information on Grand Corporation's direct materials costs follows: Quantities of chemical Y purchased and used . .
Question:
Information on Grand Corporation's direct materials costs follows:
Quantities of chemical Y purchased and used . . . . 19,200 gallons
Actual cost of chemical Y used . . . . . . . . . . . . . . . $425,000
Standard price per gallon of chemical Y . . . . . . . . . $22.50
Standard quantity of chemical Y allowed . . . . . . . . 17,600 gallons
Grand Corporation has no materials inventories.
Required
a. What were Grand Corporation's direct materials price and efficiency variances?
b. (Appendix) Prepare the journal entries to record the purchase and use of chemical Y using standard costing.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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