FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Sheffield Enterprises purchased 54,000 gallons of direct materials during the year at a price of $2.00 per gallon. Sheffield's direct materials price variance was $4,320 Favorable. Calculate the standard price per gallon of direct materials. (Round answer to 2 decimal places, e.g. 15.25.) Standard price $ eTextbook and Media /galarrow_forwardBoracay Company manufactures desks with vinyl tops. The standard material cost for the vinyl used for Model S desk is P27.00 based on 12 square feet of vinyl at a cost Ph2.25 per square foot. A production of run of 1,000 desks in March resulted in usage of 12,600 square feet of vinyl at a cost of Ph2.00 per square foot, a total cost of Ph 25,200. The usage variance resulting from the above production run was ? Ph 1,200 unfavorable Ph 1,350 unfavorable Ph 1,800 favorable Ph 3,150 favorablearrow_forwardStarts Inc. produces a product for which the standard specifies 8 yards of material per unit. The standard price of one yard of material is $8.50. During the month, 7,400 products were manufactured, using 57,900 yards at a cost of $8.30 per yard. Determine the (a) direct materials price variance, (b) direct materials quantity variance, and (c) total direct materials cost variance. (d) perform the journal entries to record the variancesarrow_forward
- Will Co. produces chairs. The standard direct material cost to produce one unit of chair is 4 meters of raw materials at P5.00 per meter. During 2020, 8,400 meters of raw materials were purchased at a cost of P20,160. All the purchased materials were actually used to produce 2,000 units of chairs. 1. Compute the actual price per meter material price and quantity variance and prepare journal entry to record the variance, assuming the price variance is determined at the time of usage.arrow_forwardorsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $154 per unit. Its standard cost per unit produced is $124 and its selling and administrative expenses totaled $244,500. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year: Materials price variance $ 8,400 F Materials quantity variance $ 12,100 U Labor rate variance $ 5,400 U Labor efficiency variance $ 6,300 F Fixed overhead budget variance $ 4,400 F Fixed overhead volume variance $ 13,900 F 1. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much? 2. Prepare an income statement for the year.arrow_forwardThe following direct materials data pertain to the operations of Pina Colada Co. for the month of December. Standard materials price Actual quantity of materials purchased and used The standard cost card shows that a finished product contains 4 pounds of materials. The 16,890 pounds were purchased in December at a discount of 4% from the standard price. In December, 4, 100 units of finished product were manufactured. Calculate the materials variances. Identify whether each variance is favorable or unfavorable. Materials Price Variance Materials Quantity Variance Total Materials Variance Save for Later $ $5.00 per pound 16,890 pounds $ $ Favorable Unfavorable Not Applicable Attempts: 0 of 1 used Submit Answerarrow_forward
- Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25.000 units. The direct materials price variance is Direct materials standard (7 pounds @ $1.65/pound) Actual cost of materials purchased. $ 11.55 per finished unit $ 257,850 Actual direct materials purchased and used. 143,000 pounds Multiple Choice $30,900 unfavorable $52.800 favorable $30,900 unfavorable. $52,800 favorable. $52,800 unfavorable. $21,900 favorable. $21,900 unfavorable.arrow_forwardJanWay Corporation manufactures a decorative vase. The vases have a standard materials cost of 2 pounds of raw materials at $3/pound. During December 15,000 pounds of raw materials costing $3.50/pound were used in producing 3,000 vases. Calculate the materials price variance and the Materials quantity variance.arrow_forwardGlassica, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 2.00 pounds per glass at a cost of $1.00 per pound. The actual result for one month's production of 7,000 glasses is 1.2 pounds per glass, at a cost of $0.30 per pound. The direct materials efficiency variance is O 650 U O $6,930 F O $6,930 U O $5,800 F O $5,600 F TAZarrow_forward
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