Compound V61Z is used to make Rigby Corporation's major product. The standard cost of compound V61Z is $33.60 per ounce and the standard quantity is 5.5 ounces per unit of output. In the most recent month, 3,130 ounces of the compound were used to make 700 units of the output. When recording the use of materials in production, Raw Materials would be:
A) credited for $129,360.
B) credited for $105,168.
C) debited for $105,168.
D) debited for $129,360.

Question

Quizplus · Accepted Answer

The Raw Materials account is credited for the actual cost of materials used. The actual quantity used is 3,130 ounces at the standard cost of $33.60 per ounce, resulting in a credit of $105,168 (3,130 ounces * $33.60/ounce).

Compound V61Z Is Used to Make Rigby Corporation's Major Product