A Manufacturer Using Standard Costing System Has Purchased Raw Material

question 119

Essay

A manufacturer using standard costing system has purchased raw material of 250 units at the actual cost of $2 per unit. The standard cost per unit of raw material is $1.85. Give journal entry to record the material cost variance at the time of purchase.

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Definitions:

Decimal Places

The quantity of numbers located after the decimal point in a figure, signifying its exactness.

Currency Format

A numerical formatting option in software applications that displays values in the monetary units of a particular country or region.

Detail Section

A part of a report or document designed to present intricate details or specific information about a subject or task.

Report Header

A section at the beginning of a report that typically contains the report title, author, date, and other relevant information.