Compound Y23Z Is Used by Carrington Corporation to Make One

question 34

Essay

Compound Y23Z is used by Carrington Corporation to make one of its products.The standard cost of compound Y23Z is $38.70 per ounce and the standard quantity is 4.6 per unit of output.Data concerning the compound in the most recent month appear below:
$$\begin{array} { | l | r | } \hline \text { Cost of material purchased in November, per } & \$ 39.20 \\\text { ounce } & \\\hline \text { Material purchased in November, ounces } & 2,800 \\\hline \text { Material used in production in Novernber, ounces } & 2,360 \\\hline \text { Actual output in November, units } &500 \\\hline\end{array}$$ 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:

Quantity Demanded

Quantity demanded refers to the total amount of a good or service that consumers are willing and able to purchase at a given price level, within a specified period.

Demand for Cheerios

The consumer desire and willingness to purchase Cheerios, a popular brand of breakfast cereal, at various price points.

Elastic than Demand

Refers to a situation where the quantity demanded of a good is more sensitive to changes in price, indicating a high price elasticity of demand.

Cereal

A food product made from processed grains, often eaten as breakfast and typically served cold with milk.