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jerico jerico
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Posts: 4603
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9 years ago
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.
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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9 years ago
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jerico Author
wrote...
9 years ago
Thank you for the help. I took this course as an elective, glad it's over in three weeks. Great textbook though!
wrote...
9 years ago
I'm happy to help you, how luck with the others, I noticed you've posted a lot of questions.
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