Question 6The Achyboi Candies manufacturer of chewing gum, uses a standard cost system. Standard product and cost specifications for 1,000 lbs of chewing gum are as follows:GumbaseCorn SyrupSugarQuantity800 lbs200 lbs200 lbsMaterials record the following:GumbaseCorn SyrupSugarPrice0.25/lb0.40/lb0.10/lbOpening Inventory10,000 lbs12,000 lbs15,000 lbsPurchases in January162,000 lbs30,000 lbs32,000 lbsDetermine PV. This one requires numerical answer. Do not put Peso sign.Ending Inventory15,000 lbs4,000 lbs11,000 lbsAs standard, it requires 23 hours worth of conversion time. Actual direct labor hours is 3,800 hours at P11,552. Factory OH is applied on a direct labor hours basis at P9for fixed and P2 for variable. Historically, 4000 direct labor hours are needed for conversion. Actual measured OH is 22,000 at 200,000 lbs output.

Solution: Determination of PRICE VARIANCE: The materials variances for January consists of price…

The Achyboi Candies manufacturer of chewing gum, uses a standard cost system. Standard product and cost specifications for 1,000 lbs of chewing gum are as follows: Gumbase Corn Syrup Sugar Quantity 800 lbs 200 lbs 200 lbs Materials record the following: Gumbase Corn Syrup Sugar Price 0.25/lb 0.40/lb 0.10/lb Opening Inventory 10,000 lbs 12,000 lbs 15,000 lbs Purchases in January 162,000 lbs Determine PV. This one requires numerical answer. Do not put Peso sign. 30,000 lbs 32,000 lbs Ending Inventory 15,000 lbs 4,000 lbs 11,000 lbs As standard, it requires 23 hours worth of conversion time. Actual direct labor hours is 3,800 hours at P11,552. Factory OH is applied on a direct labor hours basis at P9 for fixed and P2 for variable. Historically, 4000 direct labor hours are needed for conversion. Actual measured OH is 22,000 at 200,000 lbs output.

The Achyboi Candies manufacturer of chewing gum, uses a standard cost system. Standard product and cost specifications for 1,000 lbs of chewing gum are as follows: Gumbase Corn Syrup Sugar Quantity 800 lbs 200 lbs 200 lbs Materials record the following: Gumbase Corn Syrup Sugar Price 0.25/lb 0.40/lb 0.10/lb Opening Inventory 10,000 lbs 12,000 lbs 15,000 lbs Purchases in January 162,000 lbs Determine PV. This one requires numerical answer. Do not put Peso sign. 30,000 lbs 32,000 lbs Ending Inventory 15,000 lbs 4,000 lbs 11,000 lbs As standard, it requires 23 hours worth of conversion time. Actual direct labor hours is 3,800 hours at P11,552. Factory OH is applied on a direct labor hours basis at P9 for fixed and P2 for variable. Historically, 4000 direct labor hours are needed for conversion. Actual measured OH is 22,000 at 200,000 lbs output.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.4DC

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