It was the end of the third quarter for Marigold Industries. There had been some discussion in prior quarters about best practicesrelated to carrying ending inventory of its key DM, acetic acid, for making vinegar. Per established standards, 7.1 ounces of acetic acidat a budgeted price of $0.30 per ounce were needed for each gallon of vinegar (128 ounces). The new production manager wants tofollow lean practices and buy only what is needed for production, while the former production manager preferred to keep someinventory on hand for emergencies. For the third quarter, 316,800 ounces of acetic acid were purchased on account and used to make44,000 gallons of vinegar. The purchase price was $88,704.(a1)Your answer is correct.Determine the DM price and efficiency variances for the third quarter based on the information above.DM price varianceDM efficiency variance $eTextbook and MediaList of Accounts6336Attempts: 1 of 3 used Record the journal entries for the purchase and use of DM under standard costing. (Credit account titles are automatically indentedwhen amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for theamounts. List all debit entries before credit entries)Account Titles and ExplanationDM InventoryDM Price VarianceAccounts Payable(To record purchase of DM)WIP InventoryDM Efficiency VarlanceDM Inventory(To record use of DM)eTextbook and MediaList of AccountsDM Inventory balance $Debit95040]]]per bunde93720Credit63368870495040Assistance UsedContinuing with the detalls in part (a), assume there was a zero balance in the DM Inventory account to start the third quarter.What would the DM Inventory balance be at the end of the quarter? How much did Marigold Industries pay per ounce for theBestic acid? (Round amount per ounce to 2 decimal places, eg. 15.25.)Attempts: 1 of 3 used

Direct material price variance is a variance between the rate at which material should be purchased…

It was the end of the third quarter for Marigold Industries. There had been some discussion in prior quarters about best practices related to carrying ending inventory of its key DM, acetic acid, for making vinegar. Per established standards, 7.1 ounces of acetic acid at a budgeted price of $0.30 per ounce were needed for each gallon of vinegar (128 ounces). The new production manager wants to follow lean practices and buy only what is needed for production, while the former production manager preferred to keep some inventory on hand for emergencies. For the third quarter, 316,800 ounces of acetic acid were purchased on account and used to make 44,000 gallons of vinegar. The purchase price was $88,704. (a1) Your answer is correct. Determine the DM price and efficiency variances for the third quarter based on the information above. DM price variance DM efficiency variance 6336 1320 Favorable Unfavorable

It was the end of the third quarter for Marigold Industries. There had been some discussion in prior quarters about best practices related to carrying ending inventory of its key DM, acetic acid, for making vinegar. Per established standards, 7.1 ounces of acetic acid at a budgeted price of $0.30 per ounce were needed for each gallon of vinegar (128 ounces). The new production manager wants to follow lean practices and buy only what is needed for production, while the former production manager preferred to keep some inventory on hand for emergencies. For the third quarter, 316,800 ounces of acetic acid were purchased on account and used to make 44,000 gallons of vinegar. The purchase price was $88,704. (a1) Your answer is correct. Determine the DM price and efficiency variances for the third quarter based on the information above. DM price variance DM efficiency variance 6336 1320 Favorable Unfavorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what they did. In reviewing the records, you find the following information for May: Materials Purchased Materials Used 38,000 units 24,000 units You find a copy of the budget which shows that materials were budgeted at $0.60 per unit. You know that the materials price variance is recorded at the time of purchase and you find some handwritten notes among the accountants work papers. which indicate the following: Materials price variance Materials efficiency variance $ 380 F $ 1,500 F What was the total standard cost of direct materials purchased during May? Multiple Cholce $22.420 $22,800 $14.628 $23,180
The Backwoods American Company produces approximately 68,698 parkas annually. The quality-management program the company implemented was able to improve the average percentage of good parkas produced by 1% each year, beginning with 89% good-quality parkas in 2015. Only about 35% of poor-quality parkas could be reworked. (a) Compute the product yield for each of the five years. (Do not enter the percentages as decimals. Do not include the percent sign in your answers. Round your answers to the nearest integer, e.g. 35.) Year 2015 2016 2017 2018 2019 % Good-quality" eTextbook and Media Sove for Later Product yield** Attempts: unlimited Submit Answer
Miller Cereals is a small milling company that makes a single brand of cereal. Recently, a business school intern recommended that the company introduce a second cereal in order to "diversify the product portfolio." Currently, the company shows an operating profit that is 20 percent of sales. With the single product, other costs were twice the cost of rent. The intern estimated that the incremental profit of the new cereal would only be 2.5 percent of the incremental revenue, but it would still add to total profit. On his last day, the intern told Miller's marketing manager that his analysis was on the company laptop in a spreadsheet with a file name, NewProduct.xlsx. The intern then left for a 12-month walkabout in the outback of Australia and cannot be reached. When the marketing manager opened the file, it was corrupted and could not be opened. She then found an early (incomplete) copy on the company's backup server. The marketing manager then called a cost management accountant in…
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E10.13 (LO 4, 5), AP Malea Industries produces a cleaning product that works for the peskiest stains. It’s pricey, but less expensive than hiring a professional cleaning service. The managers at Malea are conducting variance analysis at the end of January, the first month of the new fiscal year. Budgeted fixed-MOH costs for the year were $2,160,000. The company’s standards for one gallon of cleaning solution are as follows, along with actual information for the month. Standard Quantity per Unit Standard Price DM 0.5 gallons of solution $20.00 per gallon DL 0.3 DL hours $18.00 per DL hour Variable-MOH 2.0 machine hours $2.40 per machine hour Fixed-MOH 2.0 machine hours $4.00 per machine hour Actual results for January: 22,000 gallons were actually produced. Cost of DM purchased was $255,800 for 12,500 gallons of solution. DM used in production was 10,800 gallons. Cost of DL was $122,400 for 7,000 DL hours worked. Variable-MOH cost was $110,300 for 46,800 machine hours used.…
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The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what she did. In reviewing the records, you find the following information for May: Materials Purchased 29,000 units Materials Used 19,500 units You find a copy of the budget which shows that materials were budgeted at $0.50/unit. You know that the material price variance is recorded at the time of purchase and you find some handwritten notes among the accountant's work papers, which indicate the following: Material price variance $ 290 F Material efficiency variance $ 1,050 F What was the total standard cost of direct materials allowed during May? Multiple Choice $8,526. $10,800. $8,700. $10,584.
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The salespeople at Larkspur, a notebook manufacturer, commonly pressured operations managers to keep costs down so the company could give bigger discounts to large customers. David, the operations supervisor, leaked the $0.80 total unit cost to salespeople, who were thrilled, since that was slightly lower than the previous year's unit cost. Budgets were not yet finalized for the upcoming year, so it was unclear what the target unit cost would be. David knew the current year's operating capacity was two million notebooks, and Larkspur produced and sold just that many. The detailed breakdown of the $0.80 total unit cost is as follows. Direct material Direct labor Variable overhead Fixed overhead Total cost per unit $0.05 0.20 0.15 0.40 $0.80
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