tandard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (900 pounds) has the following standards: Standard Quantity Standard Price 1,500 lbs. $0.40 per lb. Whole tomatoes Vinegar 80 gal. 2.40 per gal. Corn syrup 7 gal. 8.90 per gal. Salt 32 lbs. 2.20 per lb. The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follows: 1,600 lbs. of tomatoes 77 gal. of vinegar 8 gal. of corn syrup 31 lbs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Standard Cost per Batch Ingredient Whole tomatoes Vinegar Corn syrup Salt 3000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Standard Product Cost, Direct Materials Variance
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (900 pounds) has the following standards:
Standard Quantity Standard Price
1,500 lbs.
$0.40 per lb.
80 gal.
7 gal.
32 lbs.
Whole tomatoes
Vinegar
2.40 per gal.
Corn syrup
8.90 per gal.
Salt
2.20 per lb.
The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follows:
1,600 lbs. of tomatoes
77 gal. of vinegar
8 gal. of corn syrup
31 lbs. of salt
a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.
Standard Cost
per Batch
Ingredient
Whole tomatoes
Vinegar
Corn syrup
Salt
0000
Transcribed Image Text:Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (900 pounds) has the following standards: Standard Quantity Standard Price 1,500 lbs. $0.40 per lb. 80 gal. 7 gal. 32 lbs. Whole tomatoes Vinegar 2.40 per gal. Corn syrup 8.90 per gal. Salt 2.20 per lb. The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follows: 1,600 lbs. of tomatoes 77 gal. of vinegar 8 gal. of corn syrup 31 lbs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Standard Cost per Batch Ingredient Whole tomatoes Vinegar Corn syrup Salt 0000
a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.
Standard Cost
per Batch
Ingredient
Whole tomatoes
Vinegar
Corn syrup
Salt
Total
Standard unit materials cost per pound
1
b. Determine the direct materials quantity variance for batch 08-99. If required, round amounts to the nearest cent. Enter a favorable variance as a negative
number using a minus sign and an unfavorable variance as a positive number.
Materials Quantity
Ingredient
Whole tomatoes
Vinegar
Corn syrup
Salt
000000
Total direct materials quantity variance
Variance
1000
Favorable/Unfavorable
Transcribed Image Text:a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Standard Cost per Batch Ingredient Whole tomatoes Vinegar Corn syrup Salt Total Standard unit materials cost per pound 1 b. Determine the direct materials quantity variance for batch 08-99. If required, round amounts to the nearest cent. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Materials Quantity Ingredient Whole tomatoes Vinegar Corn syrup Salt 000000 Total direct materials quantity variance Variance 1000 Favorable/Unfavorable
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