Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs
Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:
Materials: | (5 kilograms $12 per kilogram) | $ | 60 | |
Labor: | (8 hours $17 per hour) | $ | 136 | |
All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July:
In-process beginning inventory | none | |||
In-process ending inventory90% complete as to labor | 1,000 | units | ||
Units completed during the month | 7,200 | units | ||
Budgeted output | 8,600 | units | ||
Purchases of materials, in kilograms (AQ) | 37,000 | |||
Total actual labor costs incurred | $ | 529,000 | ||
Direct labor hours worked (AQ) | 31,000 | hours | ||
Materials purchase-price variance | $ | 2,400 | unfavorable | |
Increase in materials inventory in July | 1,000 | kilograms | ||
Beginning inventory of materials | 0 | kg. | ||
The actual total cost of direct materials used in production during July, to the nearest dollar, was: (Round your intermediate calculations to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started