Question 1

Mention the type of variance and its impact on variances with correct reasons:

a. In the market many producers are competing as demand for the product grows

b. Materials which was low on quality was received by the department where it was ordered by purchase department.

c. Production of units was more than what was budgeted

d. Purchase of materials from new suppliers

e. Particular product Sales of the company has significantly reduced from 30 to 10%

Question 2

The budgeted results of R Ltd as follows:

Product A: sales =2,50,000, PV ratio=50%

Product B: sales =4,00,000, PV ratio=40%

Product C: sales =6,00,000, PV ratio=30%

Overheads-fixed is 5,02,200

Management is not happy with results and asked for an detailed statement of amount of loss and recommendation of sales in each of the products as well as in total sales while maintaining same sales mix which will eliminate the loss.

Question 3

Cost of the three alternative methods of processing work in an office is stated below:

A-Manual: Total fixed cost PM=3,000

Variable cost per case=48

B-Semi-Automatic:

Total fixed cost PM=9,000

Variable cost per case=28

C-Fully automatic:

Total fixed cost PM=25,000

Variable cost per case=8

Identify the indifference for A and B.

Question 4

Bellingham Company produces a product that requires sevenstandardpounds per unit. The standard price is $5 per pound. If 6,300 units used 42,300 pounds, which were purchased at $5.2 per pound, what is the direct materials (a)price variance, (b)quantity variance, and (c)cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Question 5

On January 1, 2017, Frostburg Company purchased for $68,500, equipment having a service life of six years and an estimated residual value of $4,000. Frostburg has recorded depreciation of the equipment using the straight-line method.On December 31, 2019, before making any annual adjusting entries, the equipment was exchanged for new machinery having a fair value of $35,000.The transaction has commercial substance. Use this information to prepare a General Journal entries (without explanation) required to record the events for December 31, 2019.

Question 6

An ice machine was purchased for Php400,000 with a residual value of Php75,000 and a life of 2,500 tones. During the period of March to May, the machine produced 100 tones of ice. What is the units-of-production depreciation during the said period?

Question 7

The following standard costs pertain to a component part manufactured by Ashby Company:

Direct materials

$ 2

Direct labor

5

Factory overhead

20

Standard cost per unit

$27

Factory overhead is applied at $1 per standard machine hour. Fixed capacity cost is 60% of

applied factory overhead, and is not affected by a "make or buy" decision. It would cost $25

per unit to buy the part from an outside supplier. In the decision to "make or buy," what is the

total relevant unit manufacturing cost to be considered? $ ________

Question 8

Peachtree Company uses sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the purchases journal.

May1Purchased $21,600 of merchandise on credit from Krause, Inc., terms n/30.

14Purchased $470 of store supplies from Chang Company on credit, terms n/30.

17Purchased $490 of office supplies on credit from Monder Company, terms n/30.

28Purchased store supplies from Porter's for $136 cash.

Asking to record in purchase journal.

Question 9

Bethesda Company's April 1, 2019 beginning work in process was 700 units. During April an additional 2,200 units were put into production. At the end of April all units were completed except for 875 units. Use this information to determine number of units completed.