The standard cost of Product B manufactured by MIT Company includes 3.20 units o

Question

The standard cost of Product B manufactured by MIT Company includes 3.20 units of direct materials at $5.70 per unit. During June, 26,700 units of direct materials are purchased at a cost of $5.48 per unit, and 26,700 units of direct materials are used to produce 8,200 units of Product B.

The standard cost of Product B manufactured by MIT Company includes 3.20 units of direct materials at $5.70 per unit. During June, 26,700 units of direct materials are purchased at a cost of $5.48 per unit, and 26,700 units of direct materials are used to produce 8,200 units of Product B.

Explanation / Answer

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Case 2

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ACTUAL COST OF MATERIAL USED ((AP*AQ )) STD COST OF MATERIAL USED (SP*AQ) STD COST OF STANDARD MATERIAL
(SP*SQ) Actual Qty. Actual Price (AP*AQ ) Std. Price (SP*AQ ) Std. Price STD QTY (UNITS) (SP*SQ )                   26,700                   5.48        146,316                    5.70        152,190               5.70      26,240        149,568                   26,700        146,316        152,190      26,240        149,568

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