Information concerning Johnston Co.'s direct materials costs was as follows:
The actual purchase price per pound is:
A)$6.12.
B)$6.15.
C)$6.50.
D)$6.75.
E)$7.13.

Question

Information concerning Johnston Co.'s direct materials costs was as follows: 
The actual purchase price per pound is:
A)$6.12. 
B)$6.15. 
C)$6.50. 
D)$6.75. 
E)$7.13.

Quizplus · Accepted Answer

To calculate the actual purchase price per pound, take the total cost of materials purchased ($390,000) and divide by the total pounds purchased (63,600). This gives a result of $6.13 per pound, which is closest to answer choice B ($6.15).

Information Concerning Johnston Co