Kennington Limited uses a perpetual inventory system and the cost of raw materials issued to production is calculated each time an issue is made. Details relating to component LMN, of which there was no opening inventory, are as follows: Date 1 Jan 4 June 3 July 7 Dec Purchases Purchases Issues Mits Cost per unit Date 300 SIO 14 Jan 250 18 Jun 100 $30 13 Aug 100 $35 Issues Units 200 250 150 Required: Calculate (a) the charge to production and (b) the cost of closing inventory using: (i) first-in-first-out (FIFO) (2 marks) (ii) last-in-last-out (LIFO) (2 marks) (iii) average cost (AVCO), rounded to the nearest $ (3 marks) (Total: 7 marks) Question 1(c) Choco Limited uses standard costs and a flexible budget to control its manufacture of fine chocolates. Operating data for the past week is as follows: 2. 3. finished goods produced: 8,000 cases of chocolate direct materials purchased: 6,400 kg costing $18,840 direct labour paid: 5,750 hours costing 50,350 The budget to produce 8,800 cases was as follows: 1. 6,600kg costing $19,800 2. 6,600 hours costing $52,800 Required: (a) Calculate (i) (ii) (iii) the total material variance the total labour variance the material price variance the material usage variance the direct labour rate variance the direct labour efficiency variance (vi) (b) comment upon these variances including any possible interconnection between these variances Kennington Limited uses a perpetual inventory system and the cost of raw materials issued to production is calculated each time an issue is made. Details relating to component LMN, of which there was no opening inventory, are as follows: Date 1 Jan 4 June 3 July 7 Dec Purchases Purchases Issues Mits Cost per unit Date 300 SIO 14 Jan 250 18 Jun 100 $30 13 Aug 100 $35 Issues Units 200 250 150 Required: Calculate (a) the charge to production and (b) the cost of closing inventory using: (i) first-in-first-out (FIFO) (2 marks) (ii) last-in-last-out (LIFO) (2 marks) (iii) average cost (AVCO), rounded to the nearest $ (3 marks) (Total: 7 marks) Question 1(c) Choco Limited uses standard costs and a flexible budget to control its manufacture of fine chocolates. Operating data for the past week is as follows: 2. 3. finished goods produced: 8,000 cases of chocolate direct materials purchased: 6,400 kg costing $18,840 direct labour paid: 5,750 hours costing 50,350 The budget to produce 8,800 cases was as follows: 1. 6,600kg costing $19,800 2. 6,600 hours costing $52,800 Required: (a) Calculate (i) (ii) (iii) the total material variance the total labour variance the material price variance the material usage variance the direct labour rate variance the direct labour efficiency variance (vi) (b) comment upon these variances including any possible interconnection between these variances