Problem 12-14: Flower City Cartridges

Problem 12-14: Flower City Cartridges

Flower City Cartridges (FCC) manufactures replacement cartridges for desktop printers.  FCC uses standard costs within a job order cost system.  In June, FCC purchased 18 gallons of blue ink for $385.20 and produced the following four different cartridge jobs using the blue ink (and other inks, materials, and direct labor):                                       

                                             Jobs                                     Blue Ink, Gallons Used

                                             CJ120                                                 4.2

                                             HP9X2                                                3.9

                                             CN417                                                3.8

                                             XRX776                                              4.4

 

               All four jobs have a blue ink materials standard that calls for four gallons of blue ink per job.  Blue ink has a standard cost of $20 per gallon.  These were the only jobs calling for blue ink in June.  There was no beginning blue ink inventory on June 1.

Required:

Prepare a table that indicates the financial disposition of the historical cost of the blue ink purchased in June.  (That is, account for the $385.20 blue ink purchase.)