Ingredient A12H Is a Material Used to Make Calvin Corporation's

question 22

Multiple Choice

Ingredient A12H is a material used to make Calvin Corporation's major product. The standard cost of Ingredient A12H is $23.00 per ounce and the standard quantity is 3.8 ounces per unit of output. Data concerning the compound for October appear below:
$$\begin{array} { l r l } \text { Cost of material purchased in October } & \$ 23.10 & \text { per ounce } \\\text { Material purchased in October } & 2,300 & \text { ounces } \\\text { Material used in production in October } & 2,120 & \text { ounces } \\\text { Actual output in October } & 600 & \text { units }\end{array}$$
The material was purchased on account and Calvin Corporation uses a standard costing system.
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The debit to the Materials Inventory account for October would total:

• A) $52,900.
• B) $52,440.
• C) $48,760.
• D) $53,130.

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Definitions:

Particular Product

A specific item or good that is produced and available for sale or distribution.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.

Pure Monopoly

A market structure where a single firm is the sole producer of a product or service without close substitutes, controlling the entire supply.

Oligopoly

A market configuration where few firms hold considerable power over setting prices and influencing competition.