Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hlep with c, thanks a lot It was the end of the third quarter for Splish Industries. There had been some discussion in prior quarters

image text in transcribed

hlep with c, thanks a lot

It was the end of the third quarter for Splish Industries. There had been some discussion in prior quarters about best practices related to carrying ending inventory of its key DM, acetic acid, for making vinegar. Per established standards, 6 ounces of acetic acid at a budgeted price of $0.30 per ounce were needed for each gallon of vinegar (128 ounces). The new production manager wants to follow lean practices and buy only what is needed for production, while the former production manager preferred to keep some inventory on hand for emergencies. For the third quarter, 201,300 ounces of acetic acid were purchased on account and used to make 33,000 gallons of vinegar. The purchase price was $54,351. (a1) Your answer is correct. Determine the DM price and efficiency variances for the third quarter based on the information above. DM price variance $ DM efficiency variance \$ eTextbook and Media List of Accounts Attempts: 1 of 3 used (a2) Your answer is correct. Record the journal entries for the purchase and use of DM under standard costing. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) Your answer is correct. Continuing with the details in part (a), assume there was a zero balance in the DM Inventory account to start the third quarter. What would the DM Inventory balance be at the end of the quarter? How much did Splish Industries pay per ounce for the acetic acid? (Round amount per ounce to 2 decimal places, e.g. 15.25.) DM inventory balance $ Splish industries pay per ounce eTextbook and Media List of Accounts Attempts: 1 of 3 used (c1) Suppose the company had instead purchased 216,600 ounces of the DM at the same price per ounce as determined in part (b) but still used 201,300 ounces for production. Recalculate the DM price and efficiency variances. DM price variance $ Favorable DM efficiency variance \$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting 15th Edition Text Only

Authors: Jan Williams

15th Edition

B005FCGT4O

More Books

Students also viewed these Accounting questions