Need assistance with 7-21, 11-17, 11-20 and 11-27
Exercise 15, page 303 Exercise 21, page 305 Exercise 17, page 501 Exercise 20, page 502 Exercise 27, page 504 7-15) Cave company produces a product called Lem. The standard direct material cost to produce one unit of Lem is 4 quarts of raw material at $2.50 per quart. During May 2010, 4,200 quarts of raw material were purchased at a cost of $10,080. All the purchased material was used to produce 1,000 units of Lem. a. compute the actual cost per quart and the material price variance for May 2010. b. Assume the same facts except that Cave Company purchased 5,00 quarts of material at the previously calculated cost per quart, but used only 4,200 quarts. Compute the material price variance and material usage variance for May 2010, assuming that Cave identifies variances at the earliest possible time. c. Which mangers at Cave company would most likely assume responsibility for control of the variance computed in requirement (b) ? 1. a. compute the actual cost per quart and the material price variance for may 2010. Actual cost per quart = 10080 4200 = 2.40 Material price variance = (Actual quantity x actual rate) - (Actual quantity x standard rate) = (4200 x 2.400) - (4200 x 2.50) = 10,080 - 10,500 = 420 (F) b. assume the same facts except that cave company purchased 5,000 quarts of material at the previously calculated cost per quart, but used only 4,200 quarts. compute the material price variance and material usage variance for may 2010,assuming that cave identifies variance at the earliest possible time. Material price variance = (Actual quantity x actual rate) - (Actual quantity x standard rate) = (4200 x 2.40) - (4200 x 2.50) = 10,080 - 10,500 = 420 (F) Material usage variance = (Actual quantity x standard rate) - (standard quantity x standard rate) = (4200 x 2.50) - (4000 x 2.50) = 10,500 - 10,000 = 500 (U) c. which managers at cave company would most likely assume responsibility for control of the variance computed in requirement (b)? Since Material usage variance is unfavourable, the managers responsible for it are production manager and stores manager. In case the material purchased are of inferior quality, Purchase manager should also be held responsible. 7-21) 21. LO.2 (missing information for DL) For each independent case, fill in the missing figures. Case A Case B Case C Case D Units Produced 1,000 ? 24 1,500 Stanndard hours per unit 3.5 0.9 ? ? Standard hours ? 900 600 ? Starndard rate per hour $7.25 ? $10.50 $7 Actual hours worked 3400 975 ? 4900 Actual labor cost ? ? $6,180 $31,850 Labor rate variance $850F $975F $300U ? Labor efficiency variance ? $765 ? $2,800U 11-17) Kieffer Production manufactures three joint products in a single process. The following information is available for August 2010. Product Gallons Sales Value at Cost after split-off Final price split off per gallon Jp-4539 4,500 $14 $4 $24 Jp-4587 18,00 8 5 15 Jp-4591 13,500 18 2 22 Allocate the joint const of $558,000 to the production based on the a. number of gallons b. sales value at split-off. c. approximated net realizable values at split-off. 11-20) Washington Cannery makes thee products from a single joint process. For 2010, the cannery processed all three products beyond split-off .The following data were generated for the next year. Joint product Incremental separate cost Total Revenue Candied apples $26,000 $680,000 Apple jelly 38,000 765,000 Apple jam 15,000 289,000 Analysis of 2010 market data reveals that candied apples, apple jelly, and apple jam could have been sold at split off for $675,000, $730,000, and $260,000, respectively. a. based on hindsight, evaluate management's production decisions in 2010. b. how much additional profit could the company have generated in 2010 if it had made optimal decisions at split off. 11-27 Weinberg cannery produces fillet, smoked salmon, and salmon remnants in a single process. The same amount of disposal cost is incurred whether a product is sold at split off or after further processing. In October 2010, the joint cost of the production process was $142,000. Product pounds produced separate cost final selling price Fillet 1800 $3.00 $16.00 Smoked 20,000 5.20 13.00 Remnants 2,000 .30 1.50 a. the remnants are considered a by-product of the process and are sold to cat food processors. Allocate the joint cost based on the approximated net realizable value at split off. Use the net realizable value method to account for the by-product. b. determine the value of ending Finished Goods Inventory, assuming that 4,000 pounds of salmon fillets, 2,400 pounds of smoked salmon, and 350 pounds of salmon remnants were sold
