Q3. Answer b

It was the end of the third quarter for Crane industries. There had been some discussion in prior quarters about best practices related to carrying ending inventory of its key DM, acetic acid, for making vinegar. Per established standards, 7.1 ounces of acetic acid at a budgeted price of $0.30 per ounce were needed for each gallon of vinegar (128 ounces). The new production manager wants to follow lean practices and buy only what is needed for production, while the former production manager preferred to keep some inventory on hand for emergencies. For the third quarter, 244,200 ounces of acetic acid were purchased on account and used to make 33,000 gallons of vinegar. The purchase price was $68,376. (a1) Your answer is correct. Determine the DM price and efficiency variances for the third quarter based on the information above. DM price variance DM efficiency variance $ Record the journal entries for the purchase and use of DM under stand ard costing (Credle acoount titles ore aulomaticatyy Inderted When amount is encterd. Do not indent manuolly if no entry is requirod select "No intry" for the account tiles and enter O for the amounts. Ustall debit entries before crealt entries.) Continuing with the details in part (a), assume there was a zero balance in the DM Inventory account to start the third quarter. What would the DM Inventory balance be at the end of the quarter? How much did Crane Industries pay per ounce for the acetic acid? (Round amount per ounce to 2 decimal ploces, es. 15.25) DM invertory balance Crane industries pay 5 per ounce