Dynamic Industrial is a relatively young company, with an unsophisticated accounting system. Dynamic Industrial manufactures two products, X370A, and Z410B. Each of the products has multiple components and materials (identified by SKU number), but assembly is relatively quick leaving no work in process inventory at the end of the period. Invoices are only logged and approved for payment if the full quantity of the SKU has been received.
1)Using the information provided, calculate the Materials Spending and Efficiency variance for each component/material for 2021. (Attach your solution in an excel file to the email)
2)It is believed that one of your purchasing agents has a familial relationship with one of the vendors for the company. Is there any evidence that any product experienced favorable arrangements with one of the vendors, potentially based on this relationship? What changes to the purchasing structure could be recommended to avoid this type of issue?
The beginning and ending inventory accounts for each product are provided below:
Beginning Inventory Count Ending Inventory Count Units Sold
X370A 5,040 4,040 18,220
Z410B 3,130 2,005 17,000
The company uses FIFO to value all inventory
The questions calculate the spending variances and efficiency variances of each of the SKU's or just show me one example from here how to do step by step.
A B C F G H I J J L L M N 0 0 P Q Q R Standard Material per Unit of Product D E Standard Cost Standard Material Unit $ 1.25 ft $ 1.50 ft $ 1.75 ft $ 10.75 N/A s 0.05 ft $ 0.08 ft $ 3.00 N/A $ 3.00 N/A $ 1.50 N/A A $ 1.10 ft $ 1.40 ft $ 1.79 ft S 1.79 ft $ 0.08 ft Terms 0.2 Net 30 0.2 Net 30 0.5 Net 30 6 Net 60 2 Net 30 2 Net 30 1 Net 30 1 Net 30 1 Net 30 0.2 Net 30 0.2 Net 30 0.4 Net 30 0.1 Net 30 4 Net 30 Standard 1 Product SKU Primary Vendor 2 X370A 100525 Alpha 3 X370A 101652 Alpha 4 X370A 108900 Alpha 5 X370A 202456 American Products 6 X370A 555874 Giant Wholesale 7 X370A 555902 Giant Wholesale 8 X370A 825600 Technical Innovations 9 X370A 9 825605 Technical Innovations 10 X370A 825608 Technical Innovations 11 Z410B 110852 Alpha 12 2410B 111568 Alpha 13 Z410B 118741 Alpha 14 Z410B 119561 Alpha 15 24101 555916 Giant Wholesale 16 17 18 19 20 21 22 std quantity beg. 23 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 Product Standards Inventory Information Readyx Accessibility: Investigate Purchasing Information Accounts Payable Summary + + 100% D F G H J A B 1 SKU Primary Vendor Standard Material Unit 2 100525 Alpha ft 3 101652 Alpha ft 4 108900 Alpha ft 5 110852 Alpha ft 6 111568 Alpha ft 7 118741 Alpha ft 8 119561 Alpha ft 9 202456 American Products N/A 10 555874 Giant Wholesale ft 11 555902 Giant Wholesale ft 12 555916 Giant Wholesale ft 13 825600 Technical Innovations N/A 14 825605 Technical Innovations N/A 15 825608 Technical Innovations N/A 16 17 18 19 20 21 22 23 24 Product Standards Inventory Information Purchasing Information Ready Accessibility: Investigate Beginning Inventory 395.00 855.00 4,985.00 1,235.00 1,340.00 1,980.00 80.00 3,972.00 10,101.00 12,760.00 12,520.00 2,976.00 2,932.00 951.00 E Ending Inventory 405.00 1,005.00 4,305.00 1,335.00 1,145.00 2,045.00 685.00 5,571.00 14,905.00 27,090.00 30,980.00 609.00 694.00 4,173.00 Accounts Payable Summary + + 180% D D E F G H H I JKT L L M N o P P S T U V W C 1 Purchas Vendor 1 X Y Z SKU Quantity 2 Alex Technical Innovations 825608 1,750.00 Purchase quantity of each SKU number 100525 101652 108900 555874 555874 555874 15,000.00 20,000.00 20,000.00 X370 A 100525 500.00 100525 500.00 100525 500.00 100525 2,000.00 100525 500.00 100525 500.00 100525 500.00 Z410B 110852 1,500.00 110852 200.00 110852 4,000.00 110852 300.00 555916 15,000.00 555916 37,500.00 555916 37,500.00 total 55,000.00 total 90,000.00 total 6,000.00 100.00 total 4,500.00 555902 555902 555902 15,000.00 20,000.00 20,000.00 111568 2,000.00 111568 500.00 111568 500.00 111568 500.00 119561 119561 119561 119561 119561 100.00 1,000.00 200.00 1,000.00 total 55,000.00 101652 101652 101652 101652 101652 101652 101652 1,000.00 200.00 200.00 1,000.00 500.00 500.00 1,000.00 total 3,500.00 total 2,400.00 202456 202456 202456 202456 35,000.00 35,000.00 35,000.00 35,000.00 total 3 Chris 4 Chris 5 Chris 6 Chris 7 Chris 8 Chris 9 Chris 10 Alex 11 Alex 12 Pat 13 Pat 14 Pat 15 Pat 16 Chris 17 Chris 18 Chris 19 Chris 20 Alex 21 Pat 22 Pat 23 Pat 24 Alex 25 Alex 26 Chris 27 Chris 28 Chris 29 Chris 30 Chris 31 Pat 32 Alex 33 Alex 34 Alex 35 Chris 36 Chris 37 Chris 38 Chris 39 Chris 40 Chris 41 Chris 42 Chris 118741 2,000.00 118741 2,000.00 118741 2,000.00 118741 2,000.00 3,400.00 total 140,000.00 Alpha Alpha Alpha Alpha Alpha Alpha Alpha Technical Innovations Technical Innovations Giant Wholesale Giant Wholesale Giant Wholesale American Products Alpha Alpha Alpha Alpha Technical Innovations Giant Wholesale Giant Wholesale Giant Wholesale Technical Innovations Technical Innovations Alpha Alpha Alpha Alpha Alpha American Products Technical Innovations Technical Innovations Technical Innovations Alpha Alpha Alpha Alpha Alpha Limited Stock Limited Stock Alpha 500.00 1,000.00 5,000.00 1,500.00 2,000.00 2,000.00 100.00 5,000.00 5,000.00 15,000.00 15,000.00 15,000.00 35,000.00 500.00 200.00 100.00 100.00 5,000.00 20,000.00 20,000.00 37,500.00 5,000.00 5,000.00 200.00 1,000.00 200.00 500.00 2,000.00 35,000.00 5,000.00 5,000.00 16,000.00 500.00 1,000.00 1,000.00 500.00 1,000.00 2,000.00 4,000.00 500.00 110852 111568 118741 119561 825600 825605 555874 555902 555916 202456 100525 101652 108900 119561 825608 555874 555902 555916 825600 825605 101652 108900 110852 111568 118741 202456 825600 825605 825608 100525 101652 108900 111568 119561 100525 110852 100525 5,000.00 5,000.00 total 8,000.00 108900 108900 108900 108900 108900 108900 108900 5,000.00 100.00 1,000.00 1,000.00 200.00 2,500.00 825600 825600 825600 825600 5,000.00 5,000.00 total 20,000.00 2,500.00 total 12,300.00 825608 825608 825608 1,750.00 5,000.00 16,000.00 total 22,750.00 825605 825605 825605 825605 5,000.00 5,000.00 5,000.00 5,000.00 total 20,000.00 Purchasing Information Accounts Payable Summary + Product Standards Inventory Information Ready Accessibility: Investigate + 100% A B C T J K L . N o P 0 1 Invoice Received Vendor 2 1000587 12/8/20 Technical Innovations 3 10056 12/9/20 Alpha 4 4 10056 12/9/20 Alpha 5 10056 12/9/20 Alpha 6 10056 12/9/20 Alpha 7 10070 12/28/20 Alpha 8 8 10056 12/9/20 Alpha 9 10056 12/9/20 Alpha 10 1000598 12/14/20 Technical Innovations 11 1000598 12/14/20 Technical Innovations 12 384 12/17/20 Giant Wholesale 13 384 12/17/20 Giant Wholesale 14 384 12/17/20 Giant Wholesale 15 603 12/20/20 American Products 16 10078 1/3/21 Alpha 17 10078 1/3/21 Alpha 18 10078 1/3/21 Alpha 19 10078 1/3/21 Alpha 20 1000613 1/7/21 Technical Innovations 21 405 1/7/21 Giant Wholesale 408 1/7/21 Giant Wholesale 23 408 1/7/21 Giant Wholesale 24 1000800 1/16/21 Technical Innovations 25 1000800 1/16/21 Technical Innovations 26 10125 1/18/21 Alpha 27 10125 1/18/21 Alpha 28 10125 1/18/21 Alpha 29 10140 2/4/21 Alpha 30 10125 1/18/21 Alpha 31 609 1/20/21 American Products Product Standards Inventory Information Ready Accessibility: Investigate D E F G H SKU Purchase order Total Price Paid 825608 5399 $ 3,132.50 Yes 100525 5400 $ 645.00 Yes 101652 5400 $ 1,500.00 Yes 108900 5400 $ 8,350.00 Yes 110852 5400 $ 1,725.00 Yes 111568 5400 $ 2,980.00 Yes 118741 5400 $ 3,500.00 Yes 119561 5400 $ 180.00 Yes 825600 5401 $ 15,000.00 Yes 825605 5401 $ 15,000.00 Yes 555874 5403 $ 1,168.50 Yes 555902 5403 $ 675.00 Yes 555916 5403 $ 1,200.00 Yes 202456 5404 $ 376,250.00 Yes 100525 5405 $ 645.00 Yes 101652 5405 $ 300.00 Yes 108900 5405 $ 175.00 Yes 119561 5405 $ 180.00 Yes 825608 5406 $ 8,950.00 Yes 555874 5408 $ 900.00 Yes 555902 5408 $ 1,560.00 Yes 555916 5408 $ 2,996.25 Yes 825600 5409 $ 15,000.00 Yes 825605 5409 $ 15,000.00 Yes 101652 5410 $ 300.00 Yes 108900 5410 $ 1,750.00 Yes 110852 5410 $ 230.00 Yes 111568 5410 $ 715.00 Yes 118741 5410 $ 3,600.00 Yes 202456 5411 $ 376,250.00 Yes Purchasing Information Accounts Payable Summary + 22 + 140% A B D E F G . H | j L M N O P Q R 825600 825605 825608 100525 32 1001111 33 1001111 34 1001111 35 10140 36 10140 37 10140 38 10140 39 10140 40 9000456 41 9000456 42 10181 43 10181 44 10181 45 10181 46 10181 47 611 48 451 49 451 50 451 51 10200 52 10200 53 10200 54 10200 55 10280 56 10200 57 10200 58 1001258 59 1001258 60 10300 61 10300 62 10300 63 618 1/31/21 Technical Innovations 1/31/21 Technical Innovations 1/31/21 Technical Innovations 2/4/21 Alpha 2/4/21 Alpha 2/4/21 Alpha 2/4/21 Alpha 2/4/21 Alpha 2/20/21 Limited Stock 2/20/21 Limited Stock 2/10/21 Alpha 2/10/21 Alpha 2/10/21 Alpha 2/10/21 Alpha 2/10/21 Alpha 2/20/21 American Products 2/23/21 Giant Wholesale 2/23/21 Giant Wholesale 2/23/21 Giant Wholesale 2/28/21 Alpha 2/28/21 Alpha 2/28/21 Alpha 2/28/21 Alpha 3/3/21 Alpha 2/28/21 Alpha 2/28/21 Alpha 3/4/21 Technical Innovations 3/4/21 Technical Innovations 3/18/21 Alpha 3/18/21 Alpha 3/18/21 Alpha 3/20/21 American Products 101652 108900 111568 119561 100525 110852 100525 101652 108900 118741 119561 202456 555874 5413 S 5413 $ 5413 $ 5414 $ 5414 $ 5414 $ 5414 $ 5414 $ 5415 $ 5415 $ 5416 $ 5416 $ 5416 $ 5416 $ 5416 $ 5417 $ 5418 S 5418 $ 5418 $ 5420 $ 5420 $ 5420 $ 5420 $ 5420 $ 5420 S 5420 $ 5421 $ 5421 $ 5423 $ 5423 $ 5423 $ 15,650.00 Yes 15,650.00 Yes 25,440.00 Yes 645.00 Yes 1,650.00 Yes 1,750.00 Yes 715.00 Yes 1,800.00 Yes 2,000.00 Yes 4,000.00 Yes 645.00 Yes 825.00 Yes 350.00 Yes 3,780.00 Yes 360.00 Yes 376,250.00 No 900.00 Yes 1,560.00 Yes 2,996.25 Yes 645.00 Yes 825.00 Yes 4,300.00 Yes 345.00 Yes 715.00 Yes 3,780.00 Yes 1,800.00 Yes 15,650.00 No 15,650.00 No 645.00 No 1,650.00 No 4,300.00 No 376,250.00 No 555902 555916 100525 101652 108900 110852 111568 118741 119561 825600 825605 100525 101652 108900 202456 5424 $ Purchasing Information Accounts Payable Summary + Product Standards Inventory Information Accessibility: Investigate Ready + 130%
