Compound A39A Is Used by Ashline Corporation to Make One

question 44

Essay

Compound A39A is used by Ashline Corporation to make one of its products.The standard cost of compound A39A is $32.00 per ounce and the standard quantity is 8.5 per unit of output.Data concerning the compound in the most recent month appear below:
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.
$\begin{array}{llcc} \text {Cost of material purchased in October, per ounce........ } & \$32.80 \\ \text {Material purchased in October, ounces........................ } &7,300\\ \text { Material used in production in October, ounces.......... } &7,220\\ \text { Actual output in October, units................................. } &800\\\end{array}$

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Definitions:

Deposits In Transit

Deposits that were made by customers of a bank but did not reach, or were not processed by, the bank before the preparation of the bank statement.

Bank Collections

The process of banks acting as intermediaries to collect and process payments, such as checks or drafts, on behalf of clients.

Credit Memorandum

A document issued by a seller to acknowledge a reduction in the amount that a buyer owes, often due to a return or refund.

Cash Account

An account reflecting the amount of cash available, including all receipts and payments of cash.