Machine Builders Inc.adopted a standard cost system several years ago that it uses in conjunction with its process cost system.The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: (4 kilograms x $10.00 per kilogram)$40.00/unit.Labor: (4 hours x $18.00 per hour)$72.00/unit.All materials are issued at the beginning of processing.The operating data shown below were taken from the records for July:
The actual direct materials purchase price per kilogram in July was:
A)$8.80.
B)$9.90.
C)$10.00.
D)$10.10.
E)$11.80.

Question

Machine Builders Inc.adopted a standard cost system several years ago that it uses in conjunction with its process cost system.The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: (4 kilograms x $10.00 per kilogram)$40.00/unit.Labor: (4 hours x $18.00 per hour)$72.00/unit.All materials are issued at the beginning of processing.The operating data shown below were taken from the records for July: 
The actual direct materials purchase price per kilogram in July was:
A)$8.80. 
B)$9.90. 
C)$10.00. 
D)$10.10. 
E)$11.80.

Quizplus · Accepted Answer

The Answer of Machine Builders Inc.adopted a standard cost system several years ago that it uses in conjunction with its process cost system.The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: (4 kilograms x $10.00 per kilogram)$40.00/unit.Labor: (4 hours x $18.00 per hour)$72.00/unit.All materials are issued at the beginning of processing.The operating data shown below were taken from the records for July: 
The actual direct materials purchase price per kilogram in July was:
A)$8.80. 
B)$9.90. 
C)$10.00. 
D)$10.10. 
E)$11.80.