Question
X found that the total spread on PM for the month of June 2021 was favorable by $4,000. The accountant cannot find the purchase invoice
X found that the total spread on PM for the month of June 2021 was favorable by $4,000.
The accountant cannot find the purchase invoice for the 10,000 Kg of MP for the month of June, he wonders how much the purchase price was.
During the month of June, the company manufactured 2000 units of finished products.
PM standards are as follows: 5 Kg per product unit at $10 per kg.
During this month, the journal entry for PM usage shows that the PM Quantity Variance account has been credited for $5,000.
The actual purchase cost per Kg of MP would be ?
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Introduction To Management Accounting Chapters 1 To 14
Authors: Charles T Horngren, Gary L Sundem, William O Stratton, Dave Burgstahler, Jeff Schatzberg
15th Edition
0136102778, 9780136102779
