James Johnson manufactures and sells homemade wine, and he wants to develop a standard cost per litre. The following are requiredfor production of a 150-litre batch:72.00 litres of grape concentrate at $1.20 per litre20.25 kg of granulated sugar at $0.60 per kilogram42.00 lemons at $0.60 each34.50 yeast tablets at $0.25 each33.75 nutrient tablets at $0.20 each52.50 litres of water at $0.10 per litreJames estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 20% of the lemons cannot be used.Calculate the standard cost of the ingredients for one litre of wine. (Round intermediate calculations and final answer to 3 decimal places,e.g. 1.251.)Standard cost of the ingredients for one litre of wine $

The standard cost is the budgeted cost of a regular manufacturing process in which actual cost are…

for production of a 150-litre batch: 72.00 litres of grape concentrate at $ 20.25 kg of granulated sugar at $0.60 42.00 lemons at $0.60 each 34.50 yeast tablets at $0.25 each 33.75 nutrient tablets at $0.20 each

for production of a 150-litre batch: 72.00 litres of grape concentrate at $ 20.25 kg of granulated sugar at $0.60 42.00 lemons at $0.60 each 34.50 yeast tablets at $0.25 each 33.75 nutrient tablets at $0.20 each

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pierce Ltd. specializes in the manufacture of dry cider. The one litre bottle sells for GH(13.00 each. with 25% of sales on cash terms and 75% on one month's credit. The budget shows the following sales volumes. Month Litres August 400.000 September 340.000 October 300.000 November 260.000 December 320.000 January 250.000 The company’s police is for opening inventory of cider to equal one-fifth of each month's sales, but the inventory of cider on 1 September was actually 80.000 litres, For inventories of apples, the policy is for opening inventory to equal 50% of each month's usage. On 1 September, the inventory of apples was actually 2.200 tonnes. On average. 15 kilogrammes of apples are needed to produce l litre of cider 11 tonne= l.000 kg). The cost price of apples is GHc50 tonne in September and October but GH l50 tonne in…
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PROBLEM 2 The Strawberry Bread Company buys and then sells (as bread) 2.6 million bushels of wheat ammally. The wheat must be purchased in multiples of 2,000 bushels. Ordering costs, which include grain elevator removal charges of P3,500, are P5,000 per order. Anmual carrying costs are 2 percent of the purchase price of PS per bushel. The maintains a safety stock of 200,000 bushels. The delivery time is 6 weeks. company REQUIRED 1. 2. What are the total inventory costs, including the costs of carying the safety stock? 3. The wheat processor agrees to pay the elevator removal charges if Strawberry Bread will purchase wheat in quantities of 650,000 bushels. Would it be to Strawberry Bread's advantage to order under this altemative? At what inventory level should an order be placed to prevent having to draw on the safety stock?
Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 12 lbs. 8 lbs. $7.25 Sugar 10 lbs. 14 lbs. 1.40 Standard labor time 0.50 hr. 0.60 hr. Dark Chocolate Light Chocolate Planned production 4,700 cases 11,000 cases Standard labor rate $15.50 per hr. $15.50 per hr. I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results: Dark Chocolate Light Chocolate Actual production (cases) 5,000 10,000 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $7.33 140,300 Sugar 1.35 188,000 Actual Labor Rate Actual Labor Hours Used Dark chocolate $15.25 per hr. 2,360 Light chocolate 15.80 per hr. 6,120 this is all the information i have and i need help calulating the direct labor time variance
Sell or Process Further Rise N’ Shine Coffee Company produces Columbian coffee in batches of 6,800 pounds. The standard quantity of materials required in the process is 6,800 pounds, which cost $4 per pound. Columbian coffee can be sold without further processing for $8.4 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $10 per pound. The processing into Decaf Columbian requires additional processing costs of $8,450 per batch. The additional processing will also cause a 6% loss of product due to evaporation. a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 Sell RegularColumbian(Alternative 1) Process Furtherinto Decaf Columbian(Alternative 2) DifferentialEffect on Income(Alternative 2)…
Standard Direct Materials Cost per Unit Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1,730 bars) are as follows: Ingredient Quantity Price Cocoa 570 lbs. $0.30 per lb. Sugar 180 lbs. $0.60 per lb. Milk 150 gal. $1.60 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent.
Fact Pattern: Atlas Foods produces the following three supplemental food products simultaneously through a refining process costing $93,000. The joint products, Alfa and Betters, have a final selling price of $4 per pound and $10 per pound, respectively, after additional processing costs of $2 per pound of each product are incurred after the split-off point. Morefeed, a by- product, is sold at the split-off point for $3 per pound. O A. $60,000 $31,000 $3,000 $30,000 O B. C. Alfa D. Betters Assuming Atlas Foods inventories Morefeed, the by-product, the joint cost to be allocated to Alfa using the net realizable value method is 10,000 pounds of Alfa, a popular but relatively rare grain supplement having a caloric value of 4,400 calories per pound 5,000 pounds of Betters, a flavoring material high in carbohydrates with a caloric value of 11,200 calories per pound Morefeed 1,000 pounds of Morefeed, used as a cattle feed supplement with a caloric value of 1,000 calories per pound
PROBLEM 3 Present your answer as 1000 FAVORABLE OR 1000 UNFAVORABLE if applicable. MARINA Bottlers Inc, a leading softdrinks company is producing their bottle requirements. For each case of 24 eight-ounce bottles, the company prescribed the following standard product mix: Material A @ 2.4 lb,P50/lbs;Material B @ 6 lb,P22/lbs and Material C @ 1.6 lbs, P15/lb. During the month of August, 25,000 cases were produced from an input of: Material Pounds Cost/lb A 63,700 49.00 B 125,200 20.50 C 48,100 16.00 1. COMPUTE FOR THE MATERIALS MIX VARIANCE. 2. COMPUTE FOR THE MATERIALS YIELD VARIANCE.
On November 14, the Milling Department accepted Job 111407A for 1,000 pounds of cereal mix. Materials: Standard Qty. Standard Cost Oats 525 pounds $1.25 per pound Wheat 450 pounds $1.15 per pound Barley 85 pounds $1.45 per pound Malt 65 pounds $2.15 per pound Honey 25 quarts $1.20 per quart Water 25 gallons $0.45 per gallon Time: Miller 4 1/2 hours $22.75 per hour Loader 1 1/2 hours $11.50 per hour Overhead is applied at $5.75 per pound completed. The recipe produced 1,025 pounds of cereal mix. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent. a. Journalize the entry to record the transfer of raw materials to Job 111407A. Nov. 14 Materials fill in the blank ab6eb9009046f9b_2 fill in the blank ab6eb9009046f9b_3 Work in Process fill in the blank ab6eb9009046f9b_5 fill in the blank…
Question 2 Use the following standard cost card for 1 gallon of ice cream to answer the questions. STANDARD COST CARD Product: Gallon of Ice Cream Standard Cost Manufacturing Cost Information Standard Cost Quantity per Unit Summary Direct Materials Cream 5 quarts $1.15 per quart $0.08 per ounce $36.00 per hour $5.75 Sugar 16 ounces $1.28 Direct Labor 3 minutes $1.80 Total Direct Costs $8.83 Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All material used was bought during the current period. C. Compute the material and labor variances. D. Comment on the results and possible causes of the variances.
No. 2 Dee Co produces three liquid pharmaceuticals L1, L2 and L3 from a common process. They must be produced and sold together. 1,000 litres of each of the three products are produced, incurring common process costs of $20,000 in total. The selling prices per litre for the three products at the end of the common process are: Selling price per litre L1 $6 L2 $5 L3 $8 Alternatively, all three liquids can be processed further into products L1A, L2A and L3A.They also must all be sold together or not at all. The selling prices would then be: Selling price per litre L1A $9 L2A $7 L3A $10 If L1, L2 and L3 are processed further, the following Further processing costs L1 to L1A $1,000 L2 to L2A $2,000 L3 to L3A $2,400 Required: Allocate common process cost using NRV method and constant gross margin percentage method
Standard Direct Materials Cost per Unit