Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit): Sitka Industries cost standards Standard Quantity Standard Price Direct materials 3 pounds $4.37 per pound Direct labor 1.08 hours $13.21 per hour Sitka Industries made 2,751 ladders in July and used 8,331 pounds of material to make these units. Smith Industries bought 16,812 pounds of material in the current period. There was a $286 unfavorable direct materials price variance.
Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit): Sitka Industries cost standards Standard Quantity Standard Price Direct materials 3 pounds $4.37 per pound Direct labor 1.08 hours $13.21 per hour Sitka Industries made 2,751 ladders in July and used 8,331 pounds of material to make these units. Smith Industries bought 16,812 pounds of material in the current period. There was a $286 unfavorable direct materials price variance.
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 5EB: Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The...
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Sitka Industries uses a cost system that carries direct materials inventory at a
Sitka Industries cost standards
Standard Quantity | Standard Price | |
---|---|---|
Direct materials | 3 pounds | $4.37 per pound |
Direct labor | 1.08 hours | $13.21 per hour |
Sitka Industries made 2,751 ladders in July and used 8,331 pounds of material to make these units. Smith Industries bought 16,812 pounds of material in the current period. There was a $286 unfavorable direct materials price variance.
How much in total did Sitka pay for the materials purchased? Round to the nearest penny, two decimal places.
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