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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 pounds 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. The debit to direct materials control account isa. 25,000b. 22,500c. 41,667d. 37,500

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Answer:

Balt Company

Direct Materials Control Account:

Debit to the direct materials control account is

d. 37,500

Explanation:

a) Calculation:

Since 5,000 pounds were used at a standard price of $7.50, a debit to the direct materials control account would be $37,500 (5,000 x$7.50).

b) The direct materials control account is a memorandum account where the costs of direct materials are recorded to serve as a check and point of reconciliation with the subsidiary ledger of direct materials account.  This debit shows the standard costs at actual production that is expensed  for the period or during the process.

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