i need help and explanation
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 Price and Materials Quantity variance for each component/material for 2021. The beginning and ending inventory accounts for each product (units of output) 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 ISKU Standard Material per Unit of Product Product X370A X370A X370A X370A X370A X370A C Primary Vendor 100525 Alpha 101652 Alpha 108900 Alpha 202456 American Products 555874 Giant Wholesale 555902 Giant Wholesale 825600 Technical innovations 825605 Technical innovations 825608 Technical Innovations 110852 Alpha 111568 Alpha 118741 Npha 119561 Alpha 555916 Giant Wholesale D Standard Cost Standard Material Unit $ 1.25 $ 1.50 $ 1.75 ft $ 10.75 N/A $ 0.05 s 0.08 $ 3.00 N/A $ 3.00 N/A $ 150 N/A $ 110 ft $ 1.40 $ 1.79 $ 1.79 $ 0.00 Terms 0.2 Net 30 0.2 Net 10 0.5 Net 30 6 Net 60 2 Neta 2 Ner 30 1 Net 30 1 Net 30 1 Net 10 0.2 Net 30 0.2 Net 10 0.4 Net 10 01 Net 30 4 Net 30 X370 X370A X370A 2410B 24100 Z410B 424100 524100 6 7 8 19 20 21 22 23 24 25 26 27 2B 29 30 31 32 33 35 36 37 38 39 40 41 42 43 44 Product Standards Inventory Information Purchasing Information Ready E F SKU Primary Vendor 100525 Alpha 101652 Alpha 108900 Alpha 110852 Alpha 111568 Alpha 118741 Alpha 119561 Alpha 202456 American Products 555874 Giant Wholesale 555902 Giant Wholesale 555916 Giant Wholesale 825600 Technical Innovations 825605 Technical Innovations 825608 Technical Innovations Standard Material Unit ft ft It ft ft ft ft N/A ft ft ft N/A N/A N/A D 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 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 Product Standards Inventory Information eady Purchasing Information Accounts J36 3 K L M D 1 Purchase ord PO Date Purch Vendor 5399 12/4/20 Ale Technical Innovations 5400 12/5/20 Chris Alpha 5400 12/5/20 Chile Alpha 5400 125/13 (44 Alpha 6 5400 12/5/20 ch Alpha 7 5400 12/5/20 Chris Alpha 8 5400 17/5/10 Chits Alpha 5 5400 12/5/20 Ches Alpha 10 5401 12/9/20 Ne Technical Innovations 5401 12/9/20 A Technical Innovations 12 5403 12/12/20 PM Gant Wholesale 13 5403 12/12/20 PM Gut Wholesale 5403 12/12/20 PM Gant Wholesale 15 5404 12/12/20 Pa American Products 5405 12/28/20 Chn's Alpha 17 5405 12/28/20 Chris Alpha 1 5405 12/28/20 Chis 15 5405 12/28/20 Chris Alpha 20 5406 1/1/21 Ne Technical Innovations 21 5400 1/5/21 PM Gant Wholesale 22 5408 1/5/21 PM Gant Wholesale 5408 1/5/21 PM Ger Whalaale 20 549 1/11/21 AM Technical innovations 25 5409 1/11/21 NA Technical actions 26 5410 1/14/21 Chris Alpha 27 5410 1/14/21 Chris Alpha 28 5410 1/14/21 Chas Alpha 29 5410 1/14/21 Out 10 5410 1/14121 Chat Alpha 31 5411 1/12 American Product 12 5413 1/28/21 No Technical Inn 33 5413 1/28/21 A Technical 541) 1/2.21 Ne Technical innown 35 5414 10 Ches Noha 16 5434 1/30/21 Ches Nipha 5414 1/19/21 Chris Nipha 5414 1/19/21Chito Alpha 1/30/21 Chas Alpha 40 5415 1/11/21 Ch unch 1/3121 Chat med och 42 7/9/21 Chat NID 43 5416 2/9/21 Chris 5416 Alpha 2/6/21 Chris Noha 45 S41 2/6221 ipha 46 5416 2/21 Nebe 47 5417 P Aman Products 5418 Gatw a/ Wh 1418 2/one 1470 2/24/31 52 500 Alph 5420 2/14/11 54 5410 Alph . 15 1430 222 16 21 Chat Anne 5410 14 | 1 Alph w/ 5431 WA 5421 Miches 61 143 MIMI SUV Quand 825603 1,750.00 100525 500.00 101652 1,000.00 108900 5,000.00 110552 1.500.00 111568 2,000.00 118741 2,000.00 119561 100.00 825600 5,000.00 825505 5,000.00 555874 15,000 00 555902 15,000.00 555916 15.000.00 202456 35,000 00 100525 50000 101652 20000 108900 100.00 119561 10000 325608 5.000.00 555874 20,000 00 555902 20,000.00 555916 17,500.00 $25600 5,000.00 825605 5.000.00 101652 200.00 108900 1,000.00 11082 700.00 111560 500.00 116741 3.00000 203456 35,000.00 #25100 5.000.00 8254055,000.00 325608 16,000.00 100525 500.00 1,000.00 108900 1.000.00 11156 500.00 119569 1.000.00 100525 2,000.00 110252 4,000.00 100525 500.00 101652 500.00 108900 200 00 118741 2,000 00 WA 119561 209.00 201456 35.000.00 $55814 10.000.00 35390210.000.00 355818 17.500.00 100535 SO DO 10142 102100 2.500.00 3142 190.00 1115 500 00 11871 100000 1.000 1. 5.000.00 sascos 1,000.00 190128 10000 101653 1 000 00 102100.00 2014.09.00 101653 5415 Suy 27. 1/24/21 1420 544 Product Standards Ready Purchasing Information G Received Verder SKU Purchase order Total Price 1000567 12/1/20 Technical ination 8208 5999 $ 3.132.50 Yes 10056 12/1/20 Alpha 100525 S4005 545.00 Yes 12/9/20 Alpha 101657 5400 S 1,500.00 Yes 10056 12/9/20 Alpha 108900 5400 $ 2,350.00 Yes 10056 12/9/20 Alpha 110852 5400 5 1,725.00 Yes 10070 12/28/20 Alpha 111568 5400 5 2,580.00 Yes 10056 12/9/20 Alpha 118741 5400 S 2,500.00 Yes 10056 12/9/20 Alpha 119561 5400 5 180.00 Yes 100059 12/14/20 Technical Innovation 825600 54015 15,000.00 Yes 1000598 12/14/20 Technical Innovations 825605 5401 15,000.00 Yes 384 12/17/20 Giant Wholesale 555874 54035 1,100 SO Yes 184 12/17/20 Giant Wholesale 5550 SOOS 675. DO Yes 351 12/17/20 Giant Wholesale 916 5403 603 1.200.00 Yes 12/20/20 American Products 202456 54045 376.250.00 Yes 10078 1/1/21 Alpha 100525 54955 645.00 Yes 100T 1/12 Alpha 101652 54055 300.00 Yes 10078 1/3/21 Alpha 108900 5405 175.00 Yes 10078 1/21 Alpha 119561 5405 10.00 Yes D 1000613 1/7/21 Technical Innovations 335808 5406 950.00 Yes 1 405 1/7/21 Giant Wholesale 555874 5408S 900 DO Yes 12 LOR 1/21 Gant Wholesale 55503 5408S 23 1,560.00 Yes 40 1/2 Giant Wholesale 555916 5408 2.996.25 Yes 24 100000 1/16/21 Technical Innovations 825.600 54095 15.000. DO Yes 25 1000000 1/15/21 Technical Innovations 825/60 54095 15,000.00 Yes 26 10125 1/10/21 Alpha 101652 5410 5 10125 100.00 Yes 1/11/21 Alpha SORO 54105 1,750.00 Yes 28 10125 1/18/21 Alpha 110852 54105 290.00 Yes 10140 2/4/21 Alpha 111568 54105 715.00 Yes 10 10135 1/10/21 Alpha 118741 5410 5 160.00 Yes 609 1/20/21 American Products 200456 54115 376250 DO Yes 32 1001111 1/31/21 Technical Innovation 5600 5413 15.650.00 Yes 23 1001111 1/31/21 Technical Innovation 25605 54035 15.650.00 Yes 34 1001111 1/31/21 Technical Innovation 5600 5413 5 25.440.00 Yes 35 10140 2/4/21 Alpha 100525 5414 S 645.00 Yes 36 10140 2/4/21 Alpha 30162 5414 .00 Yes 37 10140 2/4/21 Alpha 10000 54145 1,750.00 Yes 38 20140 2/4/21 Alpha 11150 54145 13 1010 24/31 Alpha 119561 54145 1.600.00TH 40 00045 2/20/21 Limited Stock 100135 54155 2,000.00 Yes 4100006 2/20/21 United Mock 13052 ses 5 4.000,00 Ves 42 10181 20/21 Alpha 100525 5416 $ 545.00 Yes 30183 1/10/21 Alpe 3062 Yes 1011 2102 A 100700 5416 Tes 1011 2/10/21 118MI 5416 es 101: 2/10/21 Alpha 129541 SANS 8.00 TE 2/20/21 American POS 203456 30.DO 2/21/21 Giant Wholesale 5558 1485 900.00 es 2/21/21 Wholesale 5550 SIRS Yes 50 151 2/23/21 Gun Wholesale su 5438 2 ye 51 sos 30052 5430 32 3200 1/21/21 Alpha 300 5430 . tes 53 10300 7/21/21 Alpha 5430 C. 272/71 Alpin 5430 1500 . Wha 111 5430 75. 8.00 Yes 10/01 2/21 11871 10000 30 Alph Yes S8100125 14/11 teca.cat 541 ISO 50 1035 4/11 Tedinovation 0.00 1/2 Alpha 1003 10100 M/A 142 LESODOM 10100 1 SORT 400.00 20 AM De 715.00 TS Sess . 3000 47 1930 A 445.00 5420 1. Sco 1000 Product Standards Inventory Information Purchasing Information Accounts Payabl Ready 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 Price and Materials Quantity variance for each component/material for 2021. The beginning and ending inventory accounts for each product (units of output) 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 ISKU Standard Material per Unit of Product Product X370A X370A X370A X370A X370A X370A C Primary Vendor 100525 Alpha 101652 Alpha 108900 Alpha 202456 American Products 555874 Giant Wholesale 555902 Giant Wholesale 825600 Technical innovations 825605 Technical innovations 825608 Technical Innovations 110852 Alpha 111568 Alpha 118741 Npha 119561 Alpha 555916 Giant Wholesale D Standard Cost Standard Material Unit $ 1.25 $ 1.50 $ 1.75 ft $ 10.75 N/A $ 0.05 s 0.08 $ 3.00 N/A $ 3.00 N/A $ 150 N/A $ 110 ft $ 1.40 $ 1.79 $ 1.79 $ 0.00 Terms 0.2 Net 30 0.2 Net 10 0.5 Net 30 6 Net 60 2 Neta 2 Ner 30 1 Net 30 1 Net 30 1 Net 10 0.2 Net 30 0.2 Net 10 0.4 Net 10 01 Net 30 4 Net 30 X370 X370A X370A 2410B 24100 Z410B 424100 524100 6 7 8 19 20 21 22 23 24 25 26 27 2B 29 30 31 32 33 35 36 37 38 39 40 41 42 43 44 Product Standards Inventory Information Purchasing Information Ready E F SKU Primary Vendor 100525 Alpha 101652 Alpha 108900 Alpha 110852 Alpha 111568 Alpha 118741 Alpha 119561 Alpha 202456 American Products 555874 Giant Wholesale 555902 Giant Wholesale 555916 Giant Wholesale 825600 Technical Innovations 825605 Technical Innovations 825608 Technical Innovations Standard Material Unit ft ft It ft ft ft ft N/A ft ft ft N/A N/A N/A D 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 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 Product Standards Inventory Information eady Purchasing Information Accounts J36 3 K L M D 1 Purchase ord PO Date Purch Vendor 5399 12/4/20 Ale Technical Innovations 5400 12/5/20 Chris Alpha 5400 12/5/20 Chile Alpha 5400 125/13 (44 Alpha 6 5400 12/5/20 ch Alpha 7 5400 12/5/20 Chris Alpha 8 5400 17/5/10 Chits Alpha 5 5400 12/5/20 Ches Alpha 10 5401 12/9/20 Ne Technical Innovations 5401 12/9/20 A Technical Innovations 12 5403 12/12/20 PM Gant Wholesale 13 5403 12/12/20 PM Gut Wholesale 5403 12/12/20 PM Gant Wholesale 15 5404 12/12/20 Pa American Products 5405 12/28/20 Chn's Alpha 17 5405 12/28/20 Chris Alpha 1 5405 12/28/20 Chis 15 5405 12/28/20 Chris Alpha 20 5406 1/1/21 Ne Technical Innovations 21 5400 1/5/21 PM Gant Wholesale 22 5408 1/5/21 PM Gant Wholesale 5408 1/5/21 PM Ger Whalaale 20 549 1/11/21 AM Technical innovations 25 5409 1/11/21 NA Technical actions 26 5410 1/14/21 Chris Alpha 27 5410 1/14/21 Chris Alpha 28 5410 1/14/21 Chas Alpha 29 5410 1/14/21 Out 10 5410 1/14121 Chat Alpha 31 5411 1/12 American Product 12 5413 1/28/21 No Technical Inn 33 5413 1/28/21 A Technical 541) 1/2.21 Ne Technical innown 35 5414 10 Ches Noha 16 5434 1/30/21 Ches Nipha 5414 1/19/21 Chris Nipha 5414 1/19/21Chito Alpha 1/30/21 Chas Alpha 40 5415 1/11/21 Ch unch 1/3121 Chat med och 42 7/9/21 Chat NID 43 5416 2/9/21 Chris 5416 Alpha 2/6/21 Chris Noha 45 S41 2/6221 ipha 46 5416 2/21 Nebe 47 5417 P Aman Products 5418 Gatw a/ Wh 1418 2/one 1470 2/24/31 52 500 Alph 5420 2/14/11 54 5410 Alph . 15 1430 222 16 21 Chat Anne 5410 14 | 1 Alph w/ 5431 WA 5421 Miches 61 143 MIMI SUV Quand 825603 1,750.00 100525 500.00 101652 1,000.00 108900 5,000.00 110552 1.500.00 111568 2,000.00 118741 2,000.00 119561 100.00 825600 5,000.00 825505 5,000.00 555874 15,000 00 555902 15,000.00 555916 15.000.00 202456 35,000 00 100525 50000 101652 20000 108900 100.00 119561 10000 325608 5.000.00 555874 20,000 00 555902 20,000.00 555916 17,500.00 $25600 5,000.00 825605 5.000.00 101652 200.00 108900 1,000.00 11082 700.00 111560 500.00 116741 3.00000 203456 35,000.00 #25100 5.000.00 8254055,000.00 325608 16,000.00 100525 500.00 1,000.00 108900 1.000.00 11156 500.00 119569 1.000.00 100525 2,000.00 110252 4,000.00 100525 500.00 101652 500.00 108900 200 00 118741 2,000 00 WA 119561 209.00 201456 35.000.00 $55814 10.000.00 35390210.000.00 355818 17.500.00 100535 SO DO 10142 102100 2.500.00 3142 190.00 1115 500 00 11871 100000 1.000 1. 5.000.00 sascos 1,000.00 190128 10000 101653 1 000 00 102100.00 2014.09.00 101653 5415 Suy 27. 1/24/21 1420 544 Product Standards Ready Purchasing Information G Received Verder SKU Purchase order Total Price 1000567 12/1/20 Technical ination 8208 5999 $ 3.132.50 Yes 10056 12/1/20 Alpha 100525 S4005 545.00 Yes 12/9/20 Alpha 101657 5400 S 1,500.00 Yes 10056 12/9/20 Alpha 108900 5400 $ 2,350.00 Yes 10056 12/9/20 Alpha 110852 5400 5 1,725.00 Yes 10070 12/28/20 Alpha 111568 5400 5 2,580.00 Yes 10056 12/9/20 Alpha 118741 5400 S 2,500.00 Yes 10056 12/9/20 Alpha 119561 5400 5 180.00 Yes 100059 12/14/20 Technical Innovation 825600 54015 15,000.00 Yes 1000598 12/14/20 Technical Innovations 825605 5401 15,000.00 Yes 384 12/17/20 Giant Wholesale 555874 54035 1,100 SO Yes 184 12/17/20 Giant Wholesale 5550 SOOS 675. DO Yes 351 12/17/20 Giant Wholesale 916 5403 603 1.200.00 Yes 12/20/20 American Products 202456 54045 376.250.00 Yes 10078 1/1/21 Alpha 100525 54955 645.00 Yes 100T 1/12 Alpha 101652 54055 300.00 Yes 10078 1/3/21 Alpha 108900 5405 175.00 Yes 10078 1/21 Alpha 119561 5405 10.00 Yes D 1000613 1/7/21 Technical Innovations 335808 5406 950.00 Yes 1 405 1/7/21 Giant Wholesale 555874 5408S 900 DO Yes 12 LOR 1/21 Gant Wholesale 55503 5408S 23 1,560.00 Yes 40 1/2 Giant Wholesale 555916 5408 2.996.25 Yes 24 100000 1/16/21 Technical Innovations 825.600 54095 15.000. DO Yes 25 1000000 1/15/21 Technical Innovations 825/60 54095 15,000.00 Yes 26 10125 1/10/21 Alpha 101652 5410 5 10125 100.00 Yes 1/11/21 Alpha SORO 54105 1,750.00 Yes 28 10125 1/18/21 Alpha 110852 54105 290.00 Yes 10140 2/4/21 Alpha 111568 54105 715.00 Yes 10 10135 1/10/21 Alpha 118741 5410 5 160.00 Yes 609 1/20/21 American Products 200456 54115 376250 DO Yes 32 1001111 1/31/21 Technical Innovation 5600 5413 15.650.00 Yes 23 1001111 1/31/21 Technical Innovation 25605 54035 15.650.00 Yes 34 1001111 1/31/21 Technical Innovation 5600 5413 5 25.440.00 Yes 35 10140 2/4/21 Alpha 100525 5414 S 645.00 Yes 36 10140 2/4/21 Alpha 30162 5414 .00 Yes 37 10140 2/4/21 Alpha 10000 54145 1,750.00 Yes 38 20140 2/4/21 Alpha 11150 54145 13 1010 24/31 Alpha 119561 54145 1.600.00TH 40 00045 2/20/21 Limited Stock 100135 54155 2,000.00 Yes 4100006 2/20/21 United Mock 13052 ses 5 4.000,00 Ves 42 10181 20/21 Alpha 100525 5416 $ 545.00 Yes 30183 1/10/21 Alpe 3062 Yes 1011 2102 A 100700 5416 Tes 1011 2/10/21 118MI 5416 es 101: 2/10/21 Alpha 129541 SANS 8.00 TE 2/20/21 American POS 203456 30.DO 2/21/21 Giant Wholesale 5558 1485 900.00 es 2/21/21 Wholesale 5550 SIRS Yes 50 151 2/23/21 Gun Wholesale su 5438 2 ye 51 sos 30052 5430 32 3200 1/21/21 Alpha 300 5430 . tes 53 10300 7/21/21 Alpha 5430 C. 272/71 Alpin 5430 1500 . Wha 111 5430 75. 8.00 Yes 10/01 2/21 11871 10000 30 Alph Yes S8100125 14/11 teca.cat 541 ISO 50 1035 4/11 Tedinovation 0.00 1/2 Alpha 1003 10100 M/A 142 LESODOM 10100 1 SORT 400.00 20 AM De 715.00 TS Sess . 3000 47 1930 A 445.00 5420 1. Sco 1000 Product Standards Inventory Information Purchasing Information Accounts Payabl Ready
