Question
The following data relates to company X Ltd for 2019 and 2020: 2019 2020 Used direct material (kg) 48,000 kg 45,000 kg Cost direct material
The following data relates to company X Ltd for 2019 and 2020:
2019 2020
Used direct material (kg) 48,000 kg 45,000 kg
Cost direct material (per kg) $12.50 $10.50
Produced (units) 14,000 units 12,000 units
Required:
Calculate the cost effect of growth for direct materials. Show all workings and clearly indicate whether the effect is favourable (F) or unfavourable (U).
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Financial Accounting A Global Perspective
Authors: Rod Monger
1st Edition
0470518405, 978-0470518403
