Gumbo Inc. is a manufacturer of chewing gum that uses a standard cost system. Standard product and cost information to produce 1000 Kg of chewing gum follows: $ Price / Kg Gum base 0.25 Corn syrup 0.40 0.10 Sugar Material records indicate for the Month of May: Material Beginning Inventory Kg Quantity Kg 800 Required: Determine the: 200 200 Gum base 10,000 Corn Syrup 12,000 Sugar 15,000 The actually finished production for May is 200,000 kg. a. Materials price variance b. Materials usage variance Purchases Kg 162,000 @$0.24 30,000 @$0.42 32,000 @$0.11 c. Materials mix variance d. Materials yield variance Ending Inventory Kg 15,000 4,000 11,000
Gumbo Inc. is a manufacturer of chewing gum that uses a standard cost system. Standard product and cost information to produce 1000 Kg of chewing gum follows: $ Price / Kg Gum base 0.25 Corn syrup 0.40 0.10 Sugar Material records indicate for the Month of May: Material Beginning Inventory Kg Quantity Kg 800 Required: Determine the: 200 200 Gum base 10,000 Corn Syrup 12,000 Sugar 15,000 The actually finished production for May is 200,000 kg. a. Materials price variance b. Materials usage variance Purchases Kg 162,000 @$0.24 30,000 @$0.42 32,000 @$0.11 c. Materials mix variance d. Materials yield variance Ending Inventory Kg 15,000 4,000 11,000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Gumbo Inc. is a manufacturer of chewing gum that uses a standard cost system. Standard product and cost information
to produce 1000 Kg of chewing gum follows:
$ Price / Kg
0.25
Quantity Kg
800
Gum base
Corn syrup
0.40
0.10
Sugar
Material records indicate for the Month of May:
Material
Beginning Inventory Kg
Required:
Determine the:
200
200
Gum base
10,000
Corn Syrup
12,000
Sugar
15,000
The actually finished production for May is 200,000 kg.
Purchases Kg
162,000 @$0.24
30,000 @$0.42
32,000 @$0.11
a. Materials price variance
b. Materials usage variance
c. Materials mix variance
d. Materials yield variance
Ending Inventory Kg
15,000
4,000
11,000
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