Compound K52E Is a Raw Material Used to Make Pinkos

question 5

Multiple Choice

Compound K52E is a raw material used to make Pinkos Corporation's major product. The standard cost of compound K52E is $46.00 per ounce and the standard quantity is 5.0 ounces per unit of output. Data concerning the compound for March appear below: The raw material was purchased on account. The debits to the Raw Materials account for March would total:

• A)$170,200
• B)$172,420
• C)$184,000
• D)$164,220

---

Definitions:

Partnership

A form of business where two or more people agree to contribute resources to start and operate a business together.

Entrepreneur

An individual who creates, organizes, and operates a business venture, taking on greater than normal financial risks in order to do so.

Business Plan

A formal document detailing a business's objectives, strategies, target market, and financial projections.

Limited Liability Corporation

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.