Q39 Machine Builders Incorporated 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:(5 kilograms × $9 per kilogram)$ 45Labor:(4 hours × $21 per hour)$ 84 All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July: In-process beginning inventorynone In-process ending inventory—90% complete as to labor1,000unitsUnits completed during the month7,900unitsBudgeted output8,600unitsPurchases of materials, in kilograms (AQ)24,000 Total actual labor costs incurred$ 520,000 Direct labor hours worked (AQ)27,000hoursMaterials purchase-price variance$ 3,200unfavorableIncrease in materials inventory in July1,900kilogramsBeginning inventory of materials0kilogram The actual total cost of direct materials used in production during July, to the nearest dollar, was: (Round your final calculation to 2 decimal places.) Multiple Choice $216,923. $213,923. $210,923. $196,073. $201,773.

Actual materials used in kilograms 22100 =24000-1900 Standard cost actual materials…

Answered: Machine Builders Incorporated adopted a…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...

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Q39

Machine Builders Incorporated 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:(5 kilograms × $9 per kilogram)	$ 45
Labor:(4 hours × $21 per hour)	$ 84

All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July:

In-process beginning inventory	none
In-process ending inventory—90% complete as to labor	1,000	units
Units completed during the month	7,900	units
Budgeted output	8,600	units
Purchases of materials, in kilograms (AQ)	24,000
Total actual labor costs incurred	$ 520,000
Direct labor hours worked (AQ)	27,000	hours
Materials purchase-price variance	$ 3,200	unfavorable
Increase in materials inventory in July	1,900	kilograms
Beginning inventory of materials	0	kilogram

The actual total cost of direct materials used in production during July, to the nearest dollar, was: (Round your final calculation to 2 decimal places.)

Multiple Choice

$216,923.
$213,923.
$210,923.
$196,073.
$201,773.

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