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Solution Library
Calculate Historical Cost Of Material Purchased In Last Month
Question
Flower City Cartridges (FCC) manufactures replacement cartridges for desktop printers. FCC uses standard costs within a job order cost system. In June, FCC purchased 18 gallons of blue ink for $385.20 and produced the following four different cartridge jobs using the blue ink (and other inks, materials, and direct labor):
Jobs Blue Ink, Gallons Used
|
CJ120 HP9X2 CN417 XRX776 |
4.2 3.9 3.8 4.4 |
All four jobs have a blue ink materials standard that calls for four gallons of blue ink per job. Blue ink has a standard cost of $20 per gallon. These were the only jobs calling for blue ink in June. There was no beginning blue ink inventory on June 1.
Required:
Prepare a table that indicates the financial disposition of the historical cost of the blue ink purchased in June. (That is, account for the $385.20 blue ink purchase).
Summary
The question belongs to Accounting and it discusses about calculating historical cost of material purchased in the last month.
Total Word Count 142
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