A company operates an integrated standard cost accounting system.

The raw material inventory at the end of period 1 should include 100 litres valued at $21 per litre.

An adverse material price variance should be recorded in the statement of profit or loss for period 1.

The raw material inventory at the end of period 2 should be valued at $20 per litre.

An adverse material price variance should be recorded in the statement of profit or loss for period 2.

The first 500 litres of raw material A issued should be debited to the Job 789 account at $20 per litre, and the remaining 50 litres at $21 per litre.