Compound K72R is used to make Munuz Corporation's major product. The standard cost of compound K72R is $43.90 per ounce and the standard quantity is 1.4 ounces per unit of output. In the most recent month, 120 ounces of the compound were used to make 100 units of the output. When recording the use of materials in production, Raw Materials would be:
A)debited for $5,268.
B)credited for $6,146.
C)credited for $5,268.
D)debited for $6,146.

Question

Quizplus · Accepted Answer

The cost of materials used is calculated as 120 ounces * $43.90 per ounce = $5,268. Since materials are used, Raw Materials would be credited for this amount.

Compound K72R Is Used to Make Munuz Corporation's Major Product