Unfavorable Materials Price Variance: The unfavorable material price variance refers to that difference which arises when the direct material is purchased for more amount than the estimated price per unit. This means that the direct material variance has a negative value as the amount paid is more than the standard price. Unfavorable Materials Quantity Variance: The unfavorable materials quantity variance refers to that difference which arises when the quantity of the direct materials used is greater than the standard quantity which was estimated. To explain: The circumstances that cause the purchasing department to be responsible for both an unfavorable price variance and an unfavorable materials quantity variance.

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Answer 1

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Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 26, Problem 14Q

To determine

Unfavorable Materials Price Variance: The unfavorable material price variance refers to that difference which arises when the direct material is purchased for more amount than the estimated price per unit. This means that the direct material variance has a negative value as the amount paid is more than the standard price.

Unfavorable Materials Quantity Variance: The unfavorable materials quantity variance refers to that difference which arises when the quantity of the direct materials used is greater than the standard quantity which was estimated.

To explain: The circumstances that cause the purchasing department to be responsible for both an unfavorable price variance and an unfavorable materials quantity variance.

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ht = ences X On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash withdrawals by owner Consulting revenue Salaries expense Cash $ 8,450 Accounts receivable 16,950 Office supplies 4,080 Rent expense Land 46,020 Office equipment 18,860 Telephone expense Accounts payable 9,280 Owner investments 84,920 Miscellaneous expenses $ 2,930 16,950 4,420 7,900 860 680 Exercise 1-18 (Algo) Preparing an income statement LO P2 Using the above information prepare a December income statement for the business. ERNST CONSULTING Income Statement Revenues Rent expense Salaries expense Telephone expense Total revenues $ 4,420 7,900 860 $ SA Assets Cash 8,450 Accounts receivable 16,950 Office supplies 4,080 Land 46,020 Office equipment 18,860 navable 9,280 13,180 5 11 of 14 Next >

Assets Current Assets Cash Credit card receivables Accounts receivable Marketable securities Food Inventories Prepaid expenses Total Current Assets Golden Bay Balance Sheet as at December 31 Year 2018 Year 2019 $ 18,500 9,807 $ 29,400 11,208 5,983 6,882 15,400 2,000 12,880 14,700 10 800 14 900 73370 79 090 Property Plant & Equipment Land Building Equipment Furnishings $ 60,500 828,400 114,900 75,730 (330,100) 16 600 766 030 839 400 $ 60,500 884,400 157,900 81,110 (422,000) 18 300 7 80 210 859 300 Net: Accumulated depreciation China, glass, silver, & linen Total Assets Liabilities & Stockholders' Equity Current Liabilities Accounts payable Accrued expenses payable Taxes payable Current mortgage payable Total Current assets $ 19,200 4,200 12,400 26 900 62 700 $16,500 5,000 20,900 26 000 68 400 Long-term liabilities Mortgage payable Total Liabilities $ $512 800 $486 400 575 500 $555 200 Stockholders' Equity Common stock ($5 par. 40,000 shares issued & OS) $200,000 Retained earnings…

Mat lives in Barbados and is desirous of starting his own business from inheritances that his parents left him. He approached you for advice on the best type of business to register. Mr. Mat said he would love to gain benefits from any tax relief that is available that the government has to offer. Give advice to Mr. Mat whether it would be more beneficial to start a Company or an Individual Trading Business. outline for Mr. Mat why setting up either a company, or a trading as business is more advantageous over the other. cover matters like: Tax rates, Available tax reliefs and or tax credits Ease of operations of a company, as well as ease of operations of an individual trading business.

Answer 2

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Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 26, Problem 14Q

To determine

Unfavorable Materials Price Variance: The unfavorable material price variance refers to that difference which arises when the direct material is purchased for more amount than the estimated price per unit. This means that the direct material variance has a negative value as the amount paid is more than the standard price.

Unfavorable Materials Quantity Variance: The unfavorable materials quantity variance refers to that difference which arises when the quantity of the direct materials used is greater than the standard quantity which was estimated.

To explain: The circumstances that cause the purchasing department to be responsible for both an unfavorable price variance and an unfavorable materials quantity variance.

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Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 26, Problem 14Q

To determine

Unfavorable Materials Price Variance: The unfavorable material price variance refers to that difference which arises when the direct material is purchased for more amount than the estimated price per unit. This means that the direct material variance has a negative value as the amount paid is more than the standard price.

Unfavorable Materials Quantity Variance: The unfavorable materials quantity variance refers to that difference which arises when the quantity of the direct materials used is greater than the standard quantity which was estimated.

To explain: The circumstances that cause the purchasing department to be responsible for both an unfavorable price variance and an unfavorable materials quantity variance.

Expert Solution & Answer

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Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 26, Problem 14Q

To determine