The following data relating to direct materials cost for October of the current year are taken from

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The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys:

Quantity of direct materials used ..................................... 3,000 lbs.

Actual unit price of direct materials .................................. $5.50 per lb.

Units of finished product manufactured ............................. .1,400 units

Standard direct materials per unit of finished product............. 2 lbs.

Direct materials quantity variance-unfavorable...................$1,000

Direct materials price variance-unfavorable....................... $1,500

Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month.

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Financial and Managerial Accounting

ISBN: 978-1285866307

13th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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