Accounting for Decision Making and Control 8th Edition by Jerold Zimmerman

تمرين 20

Jillian Soups
Jillian Soups produces a variety of dried soup mixes for supermarkets. It uses a standard cost system. Dried onions are an ingredient used in a number of its soup mixes. At the start of the month, Jillian purchased 49,000 pounds of dried onions for $107,800. The standard cost of dried onions is $2.70 per pound and Jillian had no inventory of dried onions at the beginning of the month. During the month, two batches of soups were produced that used dried onions: the onion soup recipe calls for 28,000 pounds of dried onions, but 27,000 pounds of dried onions were used because the dried onions purchased were slightly stronger than the typical dried onions usually used in the recipe. Likewise, 21,500 pounds of dried onions were used in the minestrone soup mix instead of the 22,000 called for in the recipe.
Required:
Prepare a table that decomposes the total purchase price of the dried onions ($107,800) into its various components as calculated by the standard cost system.