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    BA 510; Accounting for Decision Making & Control 7e, p12-14

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    12-14: 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 4.2
    HP9X2 3.9
    CN417 3.8
    XRX776 4.4
    All four labor jobs have a blue ink materials standard that calls for four gallons of blue ink per job. Blue ink has a standard cost of $20.00 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)

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    Solution Preview

    12-14: 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 ...

    Solution Summary

    A diagram shows computations and variances.

    $2.19

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