Reference: 21_08 Fairfield Co. Has Collected the Following Information About Its Production

question 124

Essay

Reference: 21_08
Fairfield Co. has collected the following information about its production activities for the current year:
Actual costs and quantities:
Direct materials used 95,000 lbs. @ $6.30 per lb.
Units completed during the year, 50,000 units
Standard costs and quantities:
Price per lb. of direct material, $6.05
Two lbs. of direct material per unit
-Prepare the journal entry to record the direct materials purchases and the issuance of direct materials into production.

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Definitions:

Apples

A type of fruit known for its sweet taste and crisp texture, coming in various colors such as red, green, and yellow.

Diminishing Marginal Utility

The principle that as a person increases consumption of a product, there is a decline in the marginal utility that person derives from consuming each additional unit of that product.

Floor Wax

Floor wax is a cleaning and polishing product used to protect and enhance the appearance of floor surfaces.

Dish Soap

A liquid cleaner designed to break down grease and grime on dishes, allowing for easier washing and cleaning.