Presente perOW IS INTormation rerarea Orrounder company.
Retail
Cost
$148,740
1,359,000
Beginning inventory
Purchases
Markups
Markup cancellations
Markdowns
Markdown cancellations
Sales revenue
$285,000
2,148.000
96.200
16,300
31,800
4,700
2,209,000
Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, eg.
78% and final answer to O decimal places, eg. 28,987.)
Ending inventory using conventional retail inventory method
$
Answer:
Note: "The complete and organized question is attached below as picture"
Conventional Inventory Method
Particulars Cost Retail
Beginning inventory A $148,740 $285,000
Purchases $1,359,000 $2,148,000
Markups-net $79,900
Current year's addition B $1,359,000 $2,227,900
Goods available for sale C=A+B) $1,507,740 $2,512,900
Markdown-net ($27,100)
Sales ($2,209,000)
Ending inventory at retail $276,800
Cost-to-retail percentage = $1,507,740 / $2,512,900*100
Cost-to-retail percentage = 0.6 * 100
Cost-to-retail percentage = 60%
Ending inventory at cost = Ending inventory at retail * Cost-to-retail percentage
Ending inventory at cost = $276,800 * 60%
Ending inventory at cost = $166,080
Does Amit drive a car safely (into statement)
Answer:
Amit drives a car safely
Purchasing power parity does not hold in the short to medium run because:____.
Answer:
some goods aren't internationally traded
Explanation:
Purchasing power parity is most popularly known as the PPP. It may be defined as the measure of the prices of the various countries which makes use of the price of some specific goods in order to compare the absolute purchasing capability or power for the countries' currencies.
It is used to measure and compare prices at different locations.
The purchasing power does not hold good in the short to the medium run as different countries produces different goods and as such all the goods are not internally traded all over the locations or countries.
Patriot Company produces flak jackets for military use. The company recently adopted a standard costing system and set the following standards for materials per unit of product:
Materials (Ballistic Nylon): 8 yards
$4 per yard During the most recent month, Patriot produced 5,500 units of flak jackets. Actual materials purchased and used were 40,000 yards at the price of $4.20 per yard. Based on the information above, answer the following questions: L 5 points]
(1) What was the total material costs incurred by the company during the month (i.e, actual costs of materials)?
(2) What should be the total material costs allowed for the production during the month (i.e., standard costs of materials)?
(3) What is the total variance for materials to be reported during the month? Is it favorable (F) or unfavorable (U)? materials price and quantity (usage) variances below. Indicate whether each variance is favorable (F or unfavorable (U
(4) Using either the template (columnar) approach or the formula approach, compute direct
Answer:
Patriot Company
1. The total material costs incurred by the company during the month (actual costs of materials) = $168,000
2. The total material costs allowed for the production during the month (i.e., standard costs of materials) = $176,000
3. The total variance for materials to be reported during the month is $8,000 F.
4. The Direct material price variance is = $8,000 U
5. The Direct material quantity variance is = $16,000 F
Explanation:
a) Data and Calculations:
Standard for materials per unit:
Materials (Ballistic Nylon): 8 yards $4 per yard = $32 per unit
Production in the most recent month = 5,500 units
Actual materials purchased and used = 40,000 yards at $4.20 per yard
1. The total material costs incurred by the company during the month (actual costs of materials) = $168,000 (40,000 * $4.20)
2. The total material costs allowed for the production during the month (i.e., standard costs of materials) = $176,000 (8 * 5,500 * $4.00)
3. The total variance for materials to be reported during the month = $8,000. It is favorable (F)
4. Direct materials price variance = (Standard price - Actual price) * Actual quantity
= ($4.00 - $4.20) * 40,000
= $8,000 U
5. Direct materials quantity variance = Standard quantity - Actual quantity * Standard price
= (44,000 - 40,000) * $4
= 4,000 * $4
= $16,000 F
If anyone knows about businesses can you help me please
Answer:
I believe it is team standard
Explanation:
One way a group of people can become an effective team is to create team standards. These are essentially the rules that govern how the team works and behaves. To be effective, the team standards need to be set and agreed to by the team members and not dictated to them by a boss or manager.
How do family environment influence moral development during adolescence?
Answer:
Explanation:
In the family environment, children come to consider their actions not only in terms of justice but also in terms of emotional needs. Children learn the value of social support from their families and develop motivations based on kindness, generosity, and empathy, rather than on only personal needs and desires.
Answer:
In the family environment, children come to consider their actions not only in terms of justice but also in terms of emotional needs. Children learn the value of social support from their families and develop motivations based on kindness, generosity, and empathy, rather than on only personal needs and desires.
Explanation:
The table shows an indifference schedule for several combinations of x and y. Approximately how much of y is the consumer willing to give up to obtain the sixteenth unit of x
A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $55 per unit (100 bottles), including fixed costs of $12 per unit. A proposal is offered to purchase small bottles from an outside source for $36 per unit, plus $3 per unit for freight.
Required:
Prepare a differential analysis dated January 25 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming fixed costs are unaffected by the decision.
Answer:
Differential Analysis on January 25:
Make Buy Difference
Alternative 1 Alternative 2
Avoidable costs $43 $39 $4
per unit of (100 bottles)
Explanation:
a) Data and Calculations:
Variable manufacturing cost per unit = $43 ($55 - $12)
Fixed manufacturing cost per unit = 12
Total manufacturing cost per unit = $55
Outside supplier's offered price per unit = $36
Freight per unit for outside supply = 3
Total outside supply cost per unit = $39
b) There is an additional avoidable cost of $4 per unit to make the bottles. From a financial point of view, it will be cost-effective to buy the bottles from the outside supplier. If the company finds an alternative use of the production facilities, the cost difference will increase.
Trego Company issued, payable on December 31, 2015, $10,000 face value, 8%, 4-year bonds. Interest will be paid annually each December 31. Market interest rate on similar bonds is 6%. Trego uses the effective interest rate method of amortizing bond discount or premium. (PV of annuity; n; n=4;i=6%)=3.46511 (PV; n=4;i=6%)=0.79209 What is the issuing price?
a. $9,503.
b. $10,735.
c. $10,693.
d. $9,603.
Answer: $10693
Explanation:
The issuing price can.wb calculated thus:
Firstly, we'll calculate the annual interest which will be:
= $10000 × 8%
= $800
The present value of the interest will be:
= 800 × pvifa (6%,4yrs)
= 800 × 3.46511
= 2772.09
Pv of face value will be:
= 1000 × pvif(6%,4yrs)
= 10000*0.79209
=7920.90
Therefore, the issuing price will be:
= PV of interest + present value of face value
= 2772.09 + 7920.90
= 10692.99
= $10693
Therefore, issuing price is $10693.
On October 1, 2021, Sonoma Company leased equipment from Napa Inc. in lease payable in five equal annual payments of $540,000, beginning Oct 1, 2022. Similar transactions have carried an 11% interest rate. The right-of-use asset would be recorded at:________ (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Answer:
$1,995,786
Explanation:
Calculation to determine what The right-of-use asset would be recorded at:
Using this formula
Right-of-use asset=Annual payments*PV ordinary annuity
Where,
Annual payments=$540,000
PV ordinary annuity of $1: n = 5; i = 11%=3.69590
Let plug in the formula
Right-of-use asset= $540,000 × 3.69590
Right-of-use asset = $1,995,786
Therefore The right-of-use asset would be recorded at:$1,995,786
Brazilian real (the currency of Brazil) to US dollar exchange rate (BRLUSD) is currently quoted at 0.2570. The one-year US risk-free rate is 1% and the one-year Brazil risk-free rate is 14% (both expressed with continuous compounding). The current quoted one-year forward BRLUSD rate is 0.2300.
Based on the above information, solve the following
1. What is correct about the spot BRLUSD exchange rate?
A) Brazilian real is currently worth 0.2570 US dollar.
B) US dollar is currently worth 0.2570 Brazilian real.
C) 3.891 US dollar is currently worth 1 Brazilian real.
D) None of the above
2. Theoretically, what should be the 1-year forward BRLUSD rate?
A) 0.1982
B) 0.2257
C) 0.2300
D) 0.2570
3. Which one is an arbitrage strategy that could be taken right now?
A) Borrow USD at 1% interest rate then convert to BRL right now; invest BRL for one year at 14%; after one year, convert BRL back to USD.
B) Borrow BRL at 14% interest rate then convert to USD right now; invest USD for one year at 1%; after one year, convert USD back to BRL.
C) Short the 1-year forward BRLUSD contract at 0.2300; buy back one-year later at whatever the spot rate that time.
D) None of the above
On January 2, 2021, the Jackson Company purchased equipment to be used in its manufacturing process. The equipment has an estimated life of eight years and an estimated residual value of $55,000. The expenditures made to acquire the asset were as follows:
Purchase price $236,500
Freight charges 8,000
Installation charges 11,500
Jackson's policy is to use the double-declining-balance (DDB) method of depreciation in the early years of the equipment's life and then switch to straight line halfway through the equipment's life.
Required:
Calculate depreciation for each year of the asset's eight-year life.
Answer:
2021
Depreciation expense = $64,000
2022
Depreciation expense = $48,000
2023
Depreciation expense = $52,000
2024
Depreciation expense = $51,000
2025
Depreciation expense = $10,250
2026
Depreciation expense = $10,250
2027
Depreciation expense = $10,250
2028
Depreciation expense = $10,250
Explanation:
Depreciation Charge using the double-declining-balance (DDB) method is determined as follows :
Depreciation Charge = 2 x SLDP x BVSLDP
where,
SLDP = 100 ÷ Number of useful life
= 100 ÷ 8
= 12.5 %
and
BVSLDP = cost (in first year) and Book Value thereafter.
therefore,
2021
Depreciation expense = 2 x 12.5 % x $256,000 = $64,000
2022
Depreciation expense = 2 x 12.5 % x ($256,000 - $64,000) = $48,000
2023
Depreciation expense = 2 x 12.5 % x ($256,000 - $48,000) = $52,000
2024
Depreciation expense = 2 x 12.5 % x ($256,000 - $52,000) = $51,000
Now from 2024 we have to switch to straight line method
With Straight Line Method, we charge a fixed amount of depreciation using the formula :
Depreciation expense = (Cost - Residual Value) ÷ Remaining Useful life
But since we have provided for depreciation expenses before, we have to reduce the cost by $215,000 (accumulated depreciation to date). Also we reduce the remaining useful life by the years expired to 4 years.
2025
Depreciation expense = ($256,000 - $215,000) ÷ 4 = $10,250
2026
Depreciation expense = ($256,000 - $215,000) ÷ 4 = $10,250
2027
Depreciation expense = ($256,000 - $215,000) ÷ 4 = $10,250
2028
Depreciation expense = ($256,000 - $215,000) ÷ 4 = $10,250
According to Orlando:_____.
(a) workers have obligations to, but are owed consideration by, their employers.
(b) workers are subject to the legitimate expectations of their employers but employers are not subject to any legitimate expectations of workers.
(c) all of the above.
(d) none of the above.
Answer:
According to Orlando:_____.
(a) workers have obligations to, but are owed consideration by, their employers.
Explanation:
Workers are employed by their employers to carry out their obligations as per instruction. They owe the duty of reasonable care to their employers. They are supposed to be honest in their dealings with their employers. Workers are also required to take safety and health measures to protect themselves and others from harm at the workplace. For all these obligations, the employers of labor must pay adequate consideration to their workers and ensure their safety at work.
On Thursday, Justin flies from Baltimore (where the office for his sole proprietorship is located) to Cadiz (Spain). He conducts business on Friday and Tuesday; vacations on Saturday, Sunday, and Monday (a legal holiday in Spain); and returns to Baltimore on Thursday. Justin was scheduled to return home on Wednesday, but all flights were canceled due to bad weather. As a result, he spent Wednesday watching floor shows at a local casino.
a. For tax purposes, what portion of Justin’s trip is regarded as being for business?
b. Suppose Monday was not a legal holiday. Would this change your answer in (a)? Explain.
c. Under either (a) or (b), how much of Justin’s airfare qualifies as a deductible business expense?
Answer:
a. For tax purposes, what portion of Justin’s trip is regarded as being for business?
The whole trip is considered a business trip because Justin started working before the weekend and continued to work after the holiday was over. He is not responsible for bad weather conditions.
b. Suppose Monday was not a legal holiday. Would this change your answer in (a)? Explain.
Yes, it would make a difference since a legal holiday counts as a labor day, so Justin legally worked immediately after the weekend, but if Monday wasn't a holiday and he got back to work on Tuesday, then he couldn't consider Saturday, Sunday nor Monday as business days.
c. Under either (a) or (b), how much of Justin’s airfare qualifies as a deductible business expense?
the airfare is 100% deductible under any scenario
The portion of Justin’s trip that is regarded as being for business is the whole trip.
It should be noted that the whole trip is considered a business trip due to the fact that Justin started working before the weekend and continued to work after the holiday was over. If Monday was not a legal holiday, it'll make a difference since a legal holiday counts as a labor day, so Justin legally worked immediately after the weekend.Under either (a) or (b), the amount of Justin’s airfare that qualifies as a deductible business expense is the whole amount which is 100% of the amount.Read related link on:
https://brainly.com/question/15186716
During January, Deluxe Printing pays employee salaries of $0.83 million. Withholdings in January are $76,000 for the employee portion of FICA, $210,000 for federal and state income tax, and $40,000 for the employee portion of health insurance (payable to Blue Cross/Blue Shield). The company incurs an additional $48,000 for federal and state unemployment tax, and $20,000 for the employer portion of health insurance.
The journal entry to record employer-provided fringe benefits includes:______.
Answer:
Credit to accounts payable (blue cross/blue shield) of $20,000
Explanation:
Based on the information given we were told that the amount of $20,000 is the amount for the employer portion of health insurance which therefore means that The appropiate journal entry to record employer-provided fringe benefits includes:
CREDIT To Accounts Payable (blue cross/blue shield) of $20,000.
The Industrial Revolution focused on what?
Which of the following is a characteristic of a corporation?
Shareholders are generally not personally liable for the business's obligations
and liabilities.
The corporation must have an elected board of directors.
The corporation is a separate taxable entity from its owners.
All of these answers
The Jessica Co. has the following errors on its books as of December 31, 2018. The books for 2018 have not yet been closed.
a. On January 1, 2016, a machine had been purchased for $6,500. The machine had an estimated life of five years, but it was expensed in error. Straight-line depreciation with no salvage value should have been used.
b. On January 1, 2017, the company bought a four-year insurance policy for $800 and immediately charged the full premium to expense.
Required:
Prepare journal entries to correct these errors on December 31, 2018. Ignore income taxes.
Answer and Explanation:
The journal entry is given below;
a. Machine or equipment $6,500
To Accumulated depreciation ($6,500 × 3 ÷ 5) $3,900
To Retained earnings $2,600
(being the correction of the error is recorded)
b. Prepaid insurance Dr ($800 ÷ 4 × 2 ) $400
To Retained earnings $400
(being the correction of the error is recorded)
These two entries should be recorded to correct the given errors
Your boss is considering a 5-year investment project. If the project is accepted, it would require an immediate spending of $678 to buy all necessary production equipment. This equipment would be sold at the end of the project and bring your company estimated $144 in sale proceeds after taxes (or after-tax salvage value). Your boss's consulting team estimated that the annual after-tax profits (or operating cash flows) would equal $173. The team also recommends immediately setting aside $58 in cash to cover any unforeseen expenses. The required annual rate of return is 8.1%.
Calculate the Net Present Value of this proposed investment project. (Do NOT use "S" in your answer. Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your answer to TWO decimal places. For example, 1,000,23 or -1,000.23) Focus E- 17 786 words English (United States)
Answer:
$50.47
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = - ($678 + $58 ) = -736
Cash flow in year 1 - 4 = $173
Cash flow in year 5 = $173 + $144
I = 8.1
NPV = 50.47
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Hours Wait time 28.0 Process time 1.0 Inspection time 0.4 Move time 3.2 Queue time 5.1 The delivery cycle time was: (Round your intermediate calculations to 1 decimal place.) Multiple Choice 36.3 hours 8.3 hours 37.7 hours 3.2 hours
Answer:
37.7 hours
Explanation:
Calculation to determine what The delivery cycle time was:
Using this formula
Delivery cycle time=Wait time +Throughput time
Where,
Wait time=28.0
Throughput time=Process time 1.0+ Inspection time 0.4+ Move time 3.2 +Queue time 5.1=9.7
Let plug in the formula
Delivery cycle time=28.0+9.7
Delivery cycle time=37.7
Therefore Delivery cycle time was 37.7
Albert owns 100 acres of land on which he grows spruce trees. His adjusted basis for the land is $89,600. He receives condemnation proceeds of $8,960 when the city's new beltway takes 5 acres along the eastern boundary of his property. He also receives a severance award of $5,376 associated with the possible harmful effects of exhaust fumes on his trees. Albert invests the $14,336 in a growth mutual fund.
Required:
a. Determine the tax consequences to Albert of the condemnation proceeds.
b. Determine the tax consequences to Albert of the severance award.
Answer:
A. Albert has a $4,480 realized gain of which $4,480 is recognized.
B. Adjusted basis $79,744
Explanation:
a. Calculation to determine the tax consequences to Albert of the condemnation proceeds.
Based on the information given Albert has a REALIZED GAIN of the amount of $4,480 of which the amount of $4,480 is RECOGNIZED, calculated as:
=$8,960 - [(5 acres / 100 acres) x $89,600)]
=$8,960 -$4,480
=$4,480
Therefore the tax consequences to Albert of the condemnation proceeds will be $4,480 realized gain of which $4,480 is recognized.
B. Calculation to Determine the tax consequences to Albert of the severance award.
Based on the information the SEVERANCE AWARD tend to decrease Albert's basis of remaining property which therefore means that His ADJUSTED BASIS in the remaining property will be calculated as:
Adjusted basis=($89,600 - $4,480)- $5,376
Adjusted basis=$85,120-$5,376
Adjusted basis=$79,744
Therefore The the tax consequences to Albert of the severance award will be Adjusted basis of $79,744
The following information is available for Blue Spruce Corp. for 2021:
Net Income $117,000
Realized gain on sale of available-for-sale debt securities 11,000
Unrealized holding gain arising during the period on available-for-sale debt securities 34,000
Reclassification adjustment for gains included in net income 7,500
Determine other comprehensive income for 2021.
Other comprehensive income $
Compute comprehensive income for 2021.
Comprehensive income
Answer:
Other Comprehensive income = $37,500Comprehensive income = $154,500Explanation:
Other comprehensive income:
= Realized gain on sale of available-for-sale debt securities + Unrealized holding gain arising during the period on available-for-sale debt securities - Reclassification adjustment for gains included in net income
= 11,000 + 34,000 - 7,500
= $37,500
Comprehensive income = Net income + Other comprehensive income
= 117,000 + 37,500
= $154,500
Paul had a great job as a bank executive. Unfortunately, his bank came under scrutiny by federal regulators, and although Paul had done nothing illegal, he ended up being fired. Unfortunately for Paul, he had a number of debts. Among his assets were a house worth $250,000 on which he owed $150,000 to a bank that held a security interest; three vehicles; an expensive watch worth $5,000; and $120,000 in an Individual Retirement Account (IRA). He owed $900 per month in child support to his ex-wife Suzy and was behind on payments in the amount of $1,800. He also owed $2,000 in wages consisting of four months of back pay to Bob who took care of Paul's landscaping needs and swimming pool care. All creditors angrily demanded payment from liquidation of Paul's assets. Paul, on the other hand, claims that he needs all the above-mentioned assets and that he should not have to give up anything. Only federal bankruptcy exemptions apply to Paul's case. Which of the following is true regarding Paul's claim to his Individual Retirement Account (IRA)?
a. The IRA is entirely exempt from the claims of creditors.
b. The IRA is entirely subject to the claims of creditors.
c. The IRA is exempt up to $1,000.
d. The IRA is exempt up to $10,000.
e. The IRA is exempt up to $100,000.
Answer:
The answer is "Choice a".
Explanation:
A worthless security had a holding period of six months when it became worthless on December 10, 2020. The investor who had owned the security had a basis of $20,000 for it. Which of the following statements is correct?
a. The investor has a long-term capital loss of $20,000.
b. The investor has a short-term capital loss of $20,000.
c. The investor has a nondeductible loss of $20,000.
d. The investor has a short-term capital gain of $20,000.
Answer: B. The investor has a short-term capital loss of $20,000.
Explanation:
A short-term loss occurs when a deficit is realized when there's a sale of an asset which has been held by the person for a period of one year or less.
In this case, since the security was worthless, it's a loss and was also help for six months which is less than one year, then it's a short term capital loss.
Therefore, the correct option is B
The following selected account balances appeared on the financial statements of Washington Company:
Accounts Receivable, January 1 $16,209
Accounts Receivable, December 31 6,108
Accounts Payable, January 1 4,533
Accounts Payable, December 31 8,086
Merchandise Inventory, January 1 7,281
Merchandise Inventory, December 31 13,264
Sales 62,595
Cost of Merchandise Sold 32,767
Washington Company uses the direct method to calculate net cash flow from operating activities. Cash collections from customers were
a. $52,494
b. $62,595
c. $85,315
d. $72,696
Answer: $72,696
Explanation:
Cash collections from customers = Sales + Decrease in Accounts Receivable:
= 62,595 + (16,209 - 6,108)
= $72,696
Sales represents cash sales and decrease in accounts receivable will represent the amount collected from the debtors.
Which statement is FALSE?
Management stages are:
A
Collections of activities and products whose delivery is managed as a unit
B
The element of work which the Project Manager is managing on behalf of the Project
Board at any one time
Partitions of the project with decision points
D
The amount of work defined in a work package
Answer:BB
Explanation:b
Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 150 million cans per year. Suppose that the Centers for Disease Control (CDC) announces that a chemical found in tuna is causing bacterial infections to spread around the world.
The CDC's announcement will cause consumers to demand _________tuna at every price. In the short run, firms will respond by __________
Answer:
less
producing less & incurring loss
Explanation:
Due to the announcement by the CDC, residents would want to avoid consuming tuna. this would lead to a reduction in the demand for tuna. This would lead to a leftward shift of the demand curve for tuna
in the short run, some factors of production are variable, while at least one factor of production is fixed.
the firms would respond by reducing the quantity of tuna supplied
Tickets Today contracts with the producer of Riverdance to sell tickets online. Tickets Today charges each customer a fee of $6 per ticket and receives $15 per ticket from the producer. Tickets Today does not take control of the ticket inventory. Average ticket price for the event is $150. How much revenue should Tickets Today recognize for each Riverdance ticket sold?
a. $6 because the $15 from the producer is similar to a negative cost of goods sold
b. $150 because the $135 is cost of goods sold paid to the Riverdance producer
c. $21 because both the fee from the customer and the producer are earned
d. $156 because the $135 is cost of goods sold paid to the Riverdance producer
e. None of the above
Which of the following constraints correctly describe this requirement: The management also requires produce at least one kg of product 2 (denoted by X2) for every five kgs of product 1 (denoted by X1).
a. 5X1 + X 2 ≥ 0
b. X1 + 5 X 2 ≥ 0
c. X1 + 5 X 2 ≤ 0
Answer:
a. 5X1 + X 2 ≥ 0
Explanation:
Product 2 = X2
Product 1 = X1
Mass in kg of product (X1) = 5
Mass in kg of product (X2) ≥ 1 (atleast 1 kg)
Combining these Constraint :
For every 5kg of X1 ; X2 ≥ = 1
Hence ;
5X1 + X2 ≥ 0
Standard Product Cost, Direct Materials Variance
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,500 pounds) has the following standards:
Standard Quantity Standard Price
Whole tomatoes 4,200 lbs. $0.45 per lb.
Vinegar 230 gal. $2.70 per gallon.
Corn syrup 20 gal. $10.00 per gal.
Salt 92 lbs. $2.50 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 K-111 were as follows:
4,400 lbs. of tomatoes
221 gal. of vinegar
21 gal. of corn syrup
91 lbs. of salt
a. Determine the standard unit materials cost per pound for a standard batch.
b. Determine the direct materials quantity variance for batch K-111. If required, round amounts to the nearest cent.
Answer:
A. $1.18
B. Whole tomatoes $90 Unfavorable
Vinegar ($24.30) Favorable
Corn syrup $10 Unfavorable
Salt ($2.50) Favorable
Total direct materials quantity variance $73.20 Unfavourable
Explanation:
a. Calculation to Determine the standard unit materials cost per pound for a standard batch.
Ingredient Standard quantity* Standard price= Standard Cost per Batch
Whole tomatoes 4,200 lbs.*$0.45 per lb=$1,890
Vinegar 230 gal.*$2.70 per gallon=$621
Corn syrup 20 gal.*$10.00 per gal=$200
Salt 92 lbs.* $2.50 per lb=$230
Total $2,941
Standard unit materials cost per pound=$2,941/$2,500 Standard unit materials cost per pound=$1.18
Therefore the standard unit materials cost per pound for a standard batch $1.18
[b] Calculation to determine the direct materials quantity variance for batch K-111
Ingredient Standard quantity-Actual Quantity =Difference* Standard price= Materials Quantity Variance Favorable/Unfavorable
Whole tomatoes 4,200 lbs -4,400 lbs=200 lbs*$0.45=$90 UNFAVORABLE
Vinegar 230 gal- 221 gal=(9gal)*$2.70=($24.30) FAVORABLE
Corn syrup 20 gal-21 gal=1gal*$10=$10 UNFAVORABLE
Salt 92 lbs-91 lbs=(1lbs)*$2.50=($2.50)FAVOURABLE
Total direct materials quantity variance $73.20 Unfavourable
($90-$24.30+$10-$2.50)
Therefore the direct materials quantity variance for batch K-111 will be:
Whole tomatoes $90 Unfavorable
Vinegar ($24.30) Favorable
Corn syrup $10 Unfavorable
Salt ($2.50) Favorable
Total direct materials quantity variance $73.20 Unfavourable