Ingredient A12H is a raw material used to make Calvin Corporation's major product.The standard cost of Ingredient A12H is $23.00 per ounce and the standard quantity is 3.8 ounces per unit of output.Data concerning the compound for October appear below:
$$\begin{array} { | l | r | }
\hline \text { Cost of material purchased in October, per ounce } & \$ 23.10 \
\hline \text { Material purchased in October, ounces } & 2,300 \
\hline \text { Material used in production in October, ounces } & 2,120 \
\hline \text { Actual output in October, units } & 600 \
\hline
\end{array}$$The raw material was purchased on account.The credit to the Raw Materials account for October would total:
A) $52,440.
B) $48,760.
C) $52,900.
D) $53,130.

Question

Ingredient A12H is a raw material used to make Calvin Corporation's major product.The standard cost of Ingredient A12H is $23.00 per ounce and the standard quantity is 3.8 ounces per unit of output.Data concerning the compound for October appear below: 
$$\begin{array} { | l | r | } 
\hline \text { Cost of material purchased in October, per ounce } & \$ 23.10 \
\hline \text { Material purchased in October, ounces } & 2,300 \
\hline \text { Material used in production in October, ounces } & 2,120 \
\hline \text { Actual output in October, units } & 600 \
\hline
\end{array}$$The raw material was purchased on account.The credit to the Raw Materials account for October would total:
A) $52,440.
B) $48,760.
C) $52,900.
D) $53,130.

Quizplus · Accepted Answer

The credit to the Raw Materials account for October would be $52,440 (2,300 ounces x $23.10 per ounce).

Ingredient A12H Is a Raw Material Used to Make Calvin