Question

Balt Company maintains a standard cost system. Last period, Balt spent $25,000 during the period to purchase 3,000 pounds of material H. The company used 5,000 of material H to produce 800 units of product C8. The company has established a standard of 7 pounds of Material H per unit of C8, at a price of $7.50 per pound of material.

Required:

1.The debit to direct materials control account is

1. 41,667
2. 25,000
3. 22,500
4. 37,500

2. The debit to work-in-process control account is

1. 42,000
2. 45,000
3. 56,000
4. 37,500

Answer 1

1	Correct option is: C. $22,500
	Workings:
	Direct material control account	=	Number of units X estimated standard price
		=	3000 pounds X $7.50
		=	$       22,500
2	Correct option is: A. $42,000
	Work - in - process control account	=	Actualunits X estimeted pound per unit X estimated standard price
		=	(800 units X 7 pounds) X $7.50
		=	$       42,000