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Unformatted text preview: 10 Standard Costing SOLUTIONS TO APPLY WHAT YOU HAVE LEARNED 1015. a. Quantity Actual Direct purchased priced = quantity x material at standard purchased standard price = 4,000 pounds x $5.00 = $20,000 b. Direct Quantity Actual material price = purchased priced — direct variance at standard material cost = $20,000 — $20,800 = $800 Unfavorable c. Standard quantity Standard Number of direct material = quantity x of units allowed per unit produced = 0.5 lbs. x 5,000 units = 2,500 lbs. d. Quantity Standard Actual variance = quantity allowed — quantity in units for production used = 2,500 lbs. — 2,700 lbs. = 200 lbs. Unfavorable Chapter 10 – Standard Costing 70 1015. (Continued) e. Quantity variance Standard price Quantity variance in dollars = per unit of x in units of direct material material (pounds) = $5.00 x 200 lbs. = $1,000 Unfavorable f. Zhang Manufacturing Company General Journal Page 248 Date Description Post Ref. Debit Credit (1) Direct Material 20,000 Direct Material Price Variance 800 Accounts Payable 20,800 To record direct materials purchased. (2) WorkinProcess Inventory 12,500 Direct Material Quantity Variance 1,000 Raw Materials Inventory 13,500 To record materials used. Chapter 10 – Standard Costing 71 1016. a Quantity Actual Direct purchased priced = quantity x material at standard purchased standard price = 15,000 lbs. x $1.35 = $20,250 b. Direct Quantity Actual material price = purchased priced — direct variance at standard material cost = $20,250 —(15,000 x $1.30) = $750 Favorable c. Standard quantity Standard Number of direct material = quantity x of units allowed per unit produced = 3 lbs. x 5,000 units = 15,000 lbs. d. Quantity Standard Actual variance = quantity allowed — quantity in units for production used = 14,700 lbs. — 15,000 lbs. = 300 lbs. Favorable e. Quantity Standard price Quantity variance variance = per unit of x in units of direct in dollars material material (pounds) = $1.35 x 300 lbs. = $405 Unfavorable Chapter 10 – Standard Costing 72 1016. (Continued) f. Carbonnell Manufacturing Company General Journal Page 481 Date Description Post Ref. Debit Credit (1) Direct Material 20,250 Direct Material Price Variance 750 Accounts Payable 19,500 To record direct materials purchased. (2) WorkinProcess Inventory 20,250 Direct Material Quantity Variance 405 Raw Materials Inventory 19,845 To record materials used. 1017. a. Quantity Actual Direct purchased priced = quantity x material at standard purchased standard price = 2,500 sq. ft. x $6.15 = $15,375 b. Direct Quantity Actual material price = purchased priced — direct variance at standard material cost = $15,375 — (2,500 x $6.30) = $375 Unfavorable Chapter 10 – Standard Costing 73 1017. (Continued) c. Standard quantity Standard Number of direct material = quantity x of units allowed per unit produced = 4 sq. ft. x 500 units = 2,000 sq. ft....
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This note was uploaded on 01/19/2012 for the course ACC 212 taught by Professor Quintanna during the Spring '08 term at University of Miami.
 Spring '08
 Quintanna
 Cost Accounting

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