Standard set for material consumption was 500 kg @ Rs. 9 per kg. In a cost period
Question:
Standard set for material consumption was 500 kg @ Rs. 9 per kg.
In a cost period = Opening stock was 500 kg @ Rs. 9 per kg.
Purchases made = 2000 kg @ Rs. 8 – 80 per kg.
Consumption = 550 kg. 1.
Calculate the following:
(a) Usage variance;
(b) Price variance if accumulated at the point of purchase;
(c) Price variance when variance is accumulated at the point of issue on FIFO basis; and
(d) Price variance when variance is accumulated at the point of issue on LIFO basis. 2.
What is the effect on the closing stock valuation when materials are changed out to cost on basis
(c) &
(d) above?
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