The Koski Company Has Established Standards as Follows: Actual

question 18

Multiple Choice

The Koski Company has established standards as follows: Actual production figures for the past year were as follows:
-The materials price variance is:

• A) $160 U
• B) $6,300 U
• C) $300 U
• D) $150 U

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Definitions:

Average Costs

The cost per unit calculated by dividing the total costs of production by the number of units produced.

Perpetual FIFO

An inventory management method where goods are sold in the order they are acquired, continuously updated to reflect sales and purchases.

Cost of Goods Sold

An accounting term referring to the direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Ending Inventory

Ending inventory is the total value of goods available for sale at the end of an accounting period, calculated by adding new purchases to beginning inventory and subtracting cost of goods sold.