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 credits to the Raw Materials account for March would total:
A)$172,420
B)$184,000
C)$170,200
D)$164,220

Question

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 credits to the Raw Materials account for March would total:
A)$172,420 
B)$184,000 
C)$170,200 
D)$164,220

Quizplus · Accepted Answer

The Raw Materials account would be credited for the standard cost of the raw materials used in production which is 3,570 ounces × $46.00 per ounce = $164,220

Compound K52E Is a Raw Material Used to Make Pinkos