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Title: Coffey Company maintains a very large direct materials inventory because of critical demands placed Post by: jerico on Mar 13, 2015 Coffey Company maintains a very large direct materials inventory because of critical demands placed upon it for rush orders from large hospitals. Item A contains hard-to-get material Y. Currently, the standard cost of material Y is $4.00 per gram. During February, 22,000 grams were purchased for $4.10 per gram, while only 20,000 grams were used in production. There was no beginning inventory of material Y.
Required: a. Determine the direct materials price variance, assuming that all materials costs are the responsibility of the materials purchasing manager. b. Determine the direct materials price variance, assuming that all materials costs are the responsibility of the production manager. c. Discuss the issues involved in determining the price variance at the point of purchase versus the point of consumption. Title: Re: Coffey Company maintains a very large direct materials inventory because of critical demands pla Post by: cyborg on Mar 19, 2015 Content hidden
Title: Re: Coffey Company maintains a very large direct materials inventory because of critical demands placed Post by: jerico on Mar 23, 2015 Thank you for the help. I took this course as an elective, glad it's over in three weeks. Great textbook though!
Title: Re: Coffey Company maintains a very large direct materials inventory because of critical demands placed Post by: cyborg on Mar 23, 2015 I'm happy to help you, how luck with the others, I noticed you've posted a lot of questions.
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