The Following Standards Have Been Established for a Raw Material

question 16

Essay

The following standards have been established for a raw material used in the production of product N70:
The following data pertain to a recent month's operations:
Required:
a.What is the materials price variance for the month?
b.What is the materials quantity variance for the month?
c.Prepare journal entries to record the purchase and use of the raw material during the month.(All raw materials are purchased on account. )
$\begin{array}{llcc} \text {Standard quantity of the material per unit of output....... } &8.0 \text {liters } \\ \text { Standard price of the material........................................ } &\$18.30 \text { per liter }\\\end{array}$
$\begin{array} { l r l } \text { Actual material purchased............... } & 6,600 & \text { liters } \\\text { Actual cost of material purchased ....... } & \$ 119,460 & \\\text { Actual material used in production ..... } & 6,000& \text { liters } \\\text { Actual output............................. } & 720 &\text { units of product N70 }\end{array}$

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Definitions:

Corpora Cavernosa

Two parallel chambers of spongy tissue in the penis or clitoris that fill with blood during sexual arousal, leading to erection.

Corpus Spongiosum

A spongy tissue surrounding the urethra that becomes engorged with blood during an erection, preventing the urethra from pinching closed.

Urethra

A tube that carries urine from the bladder to be expelled out of the body in both males and females, and also conveys semen in males.

Extraembryonic Membrane

Membranes surrounding the embryo that provide protection, nutrition, waste removal, and gas exchange during the development of amniotic eggs.