Ingredient A12H Is a Raw Material Used to Make Calvin

question 53

Multiple Choice

Ingredient A12H is a raw material used to make Calvin Corporation's major product.The standard cost of Ingredient A12H is $23.00 per ounce and the standard quantity is 3.8 ounces per unit of output.Data concerning the compound for October appear below:
$$\begin{array} { | l | r | } \hline \text { Cost of material purchased in October, per ounce } & \$ 23.10 \\\hline \text { Material purchased in October, ounces } & 2,300 \\\hline \text { Material used in production in October, ounces } & 2,120 \\\hline \text { Actual output in October, units } & 600 \\\hline\end{array}$$ The raw material was purchased on account.The credit to the Raw Materials account for October would total:

• A) $52,440.
• B) $48,760.
• C) $52,900.
• D) $53,130.

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Definitions:

Quick Response Systems

Technologies or strategies used by businesses to rapidly respond to customer demands, often aimed at improving service quality and operational efficiency.

Order Cycle Time

The total time taken from the moment a customer places an order to the delivery of the product or service to the customer.

Order Handling Time

The timeframe from when an order is placed until it is fully processed and ready for shipment.

Logistics Cycle

The series of stages a product goes through from procurement of raw materials to the delivery of the final product to the consumer.