Malloy Corporation Has Provided the Following Data Concerning Its Most

question 91

Essay

Malloy Corporation has provided the following data concerning its most important raw material,compound I51D:
. $$\begin{array} { | l | r | } \hline \text { Standard cost, per liter } & \$ 30.50 \\\hline \text { Standard quantity, liters per unit of output } & 4.6 \\\hline \text { Cost of material purchased in October, per liter } & \$ 30.70 \\\hline \text { Material purchased in October, liters } & 4,000 \\\hline \text { Material used in production in October, liters } & 3,580 \\\hline \text { Actual output in October, units } & 800 \\\hline\end{array}$$ The raw material was purchased on account.Required:
a.Record the purchase of the raw material in a journal entry.b.Record the use of the raw material in production in a journal entry

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Definitions:

Market Rate

The market rate refers to the prevailing interest rate available in the marketplace for financial products or the current price of goods and services in a competitive market.

Vault Cash

Physical currency that banks and other depository institutions hold in their vaults, used to meet customer withdrawals and other immediate needs.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and maintaining financial system stability.

Monetary Policy

The process by which the central bank of a country controls the supply of money, aiming at managing economic growth, inflation, and unemployment.