Rush and Company values all of its inventories at standard cost. This feature also means that Rush values at standard cost all materials issued out from inventory into production. Rush began the month of August with 4,000 kilograms (kg) of chromic acid in stock and valued this inventory at $8,000. During August, the following transactions occurred:

Required:
a. What is the value of Rush€™s ending inventory and the cost of chromic acid issued out for August?
b. What is Rush€™s purchase price variance for August?
c. Fill in the following table to illustrate the relations between the purchase price, the purchase price variance, and inventoryvalues.

Transcribed Image Text:

Item Beginning inventory +Purchases - Issued out +7-Purchase price variance = Ending inventory Kgs. Value