Georgia, Inc

question 107

Multiple Choice

Georgia, Inc. has collected the following data on one of its products. The actual cost of the direct materials used is: Direct materials standard (4 lbs. @ $1/lb.) $ 4 per finished unit
Total direct materials cost variance-unfavorable $ 13,750 Actual direct materials used 150,000 lbs.
^{Actual finished units produced 30,000} units

• A) $106,250.
• B) $120,000.
• C) $150,000.
• D) $158,750.
• E) $133,750.

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Definitions:

Equivalent Units

A concept in cost accounting used to apportion costs to partially completed units of product, allowing for the calculation of per-unit costs in process costing environments.

Molding Department

A specialized section within a manufacturing plant where raw materials are shaped into components through various molding processes.

Process Cost Summary

A report detailing the total costs associated with the production process, including materials, labor, and overhead expenses, over a specific period.

Equivalent Units

A concept used in cost accounting to indicate a quantity of finished goods that could have been produced given the amount of resources actually consumed during a period.