The San Jose Corporation Uses Two Materials in the Production

question 98

Multiple Choice

The San Jose Corporation uses two materials in the production of its product. The materials, G and H, have the following standards: $\begin{array} { l r r r } \text { Material } & \text { Standard Mix } & \text { Standard Unit Price } & \text { Standard Cost } \\ \mathrm { G } & 5,250 \text { units } & \$ 1.50 \text { per unit } & \$ 7,875 \\ \mathrm { H } & 2,250 \text { units } & 4.50 \text { per unit } & \$ 10,125 \\\\ \text {Yield }& 6,000 units\end{array}$

During June, the following actual production information was provided:
$\begin{array} { l r } \text { Material } & \text { Actual Mix } \\ \text { G } & 45,000 \text { units } \\ \text { H } & 30,000 \text { units } \\ \text { Yield } & 54,000 \text { units } \end{array}$ What is the materials yield variance?

• A)$6,000 (F)
• B)$6,000 (U)
• C)$18,000 (U)
• D)$18,000 (F)

Grasp the significance of operating expenses and their relation to profit margin.

Understand the fundamental revenue generation and operating cycle of a merchandising company.

Distinguish between various terms relevant to merchandising accounting, such as sales discounts, sales returns, and the role of freight in inventory cost.

Calculate and interpret vital formulas within merchandising financial statements, including gross profit and net income calculations.

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Definitions:

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Valuable resources or capabilities that give an organization a competitive edge in its industry or market.

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The strong desire or ambition to achieve excellence and superior outcomes in tasks or goals.