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 $38.20 and produced the following four different cartridge jobs using blue ink ( and other ink materials, and direct labor):
Jobs Blue Ink /Gallons/Used
- CJ120 4.2
- HP9X2 3.9
- CN417 3.8
- XRX776 4.4
All 4 jobs have blue ink material standard that calls for 4 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 in 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 purchased).