(Appendix 10A)For Raw Material B,what Were the Mix and Yield

question 174

Multiple Choice

(Appendix 10A) For raw material B,what were the mix and yield variances,respectively?

• A) $60 favourable and $440 favourable.
• B) $240 favourable and $200 favourable.
• C) $240 unfavourable and $240 favourable.
• D) $240 unfavourable and $240 unfavourable.Yield = (3/5 * 1,200 - 230 * 3)* 8 = 240 unfavourable.

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Definitions:

Ending Inventory

The total value of all the inventory a company has on hand at the end of its fiscal period, computed under specific costing methods.

Purchase Units

These are quantities of goods a company acquires to sell in the course of business.

FIFO Method

An inventory valuation method that assumes goods are sold in the order they were acquired, standing for "First In, First Out."

Inventory Costs

The costs incurred to acquire, hold, and process inventory, including purchase prices, shipping, handling, and storage.