Question

produces class rings. Its​ best-selling model has a direct materials standard of grams of a special alloy per ring. This special alloy has a standard cost of per gram. In the past​ month, the company purchased grams of this alloy at a total cost of . A total of grams were used last month to produce rings. Read the requirementsLOADING.... Requirement 1. What is the actual cost per gram of the special alloy that purchased last​ month? ​(Round your answer to the nearest​ cent.) The actual cost per gram of the special alloy that Collegiate Rings purchased last month is $

Answer 1

Complete Question:

Collegiate Rings produces class rings. Its best-selling model has a direct materials standard of 8 grams of a special alloy per ring. This special alloy has a standard cost of $65.40 per gram. In the past month, the company purchased 8,700 grams of this alloy at a total cost of $567,240. A total of 8,300 grams were used last month to produce 1,000 rings. Read the requirements. Requirement 1. What is the actual cost per gram of the special alloy that Collegiate Rings purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that Collegiate Rings purchased last month is $

Answer:

Collegiate Rings

The actual cost per gram of the special alloy that Collegiate Rings purchased last month is $65.20

Explanation:

Calculations:

Actual Cost per gram of special alloy = Total Actual Cost/Total Actual Quantity

= 567,240/8,700 grams

= $65.2

This value represents the cost of the special alloy per gram.  It is obtained as calculated above.  Price or cost per unit is always equal to the actual cost divided by the total quantity.  The actual cost will be equal to the price charged by the supplier less any discounts or special allowances.