Compound A39A Is Used by Ashline Corporation to Make One

Essay

Compound A39A is used by Ashline Corporation to make one of its products.The standard cost of compound A39A is $32.00 per ounce and the standard quantity is 8.5 per unit of output.Data concerning the compound in the most recent month appear below:
The raw material was purchased on account.
Required:
a.Record the purchase of the raw material in a journal entry.
b.Record the use of the raw material in production in a journal entry.
$\begin{array}{llcc} \text {Cost of material purchased in October, per ounce........ } & \$32.80 \\ \text {Material purchased in October, ounces........................ } &7,300\\ \text { Material used in production in October, ounces.......... } &7,220\\ \text { Actual output in October, units................................. } &800\\\end{array}$