Question $1$

Chaos Manufacturing had the following financial information for the year ended December $312023$:

During the year, the budgeted and actual costs were as follows:

Sales for the year were $$1,400,000$

Note $1-$ Raw material

Budget: $90\%$ of raw materials are traced directly to specific jobs, and the remaining $10\%$ of raw materials are

related to production but are untraceable to specific jobs

Actual: during the year $$8,000$ worth of materials were used in the production process but were untraceable.

The rest of the materials used in the production process were directly traceable and applied to WIP as Direct

Materials.

During the year $$80,000$ worth of raw materials were purchased.