Compound Y23Z Is Used by Overton Corporation to Make One

question 127

Essay

Compound Y23Z is used by Overton Corporation to make one of its products. The standard cost of compound Y23Z is $38.70 per ounce and the standard quantity is 4.6 per unit of output. Data concerning the compound in the most recent month appear below:
$\begin{array}{lrr} \text {Cost of material purchased in November, per ounce } &\$39.20\\ \text { Material purchased in November, ounces } &2,800\\ \text { Material used in production in November, ounces } &2,360\\ \text {Actual output in November, units } &500\\\end{array}$

The raw material was purchased on account.
Required:
a. Record the purchase of the raw material in a journal entry.
b. Record the use of the raw material in production in a journal entry.