(a) Concept introduction: Total cost: It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs. The total cost of purchases for October.

Question

Problem No. 2 The trial balance of Cleint Lumanao Nacho Supplies on February 10, 2025, before accepting Shila Tajonera as partner is shown as follows: Account Title Debit Credit Ato Cash reening smuo P 100,000 Accounts Receivable 250,000 Allowance for Uncollectible Accounts P 20,000 o Merchandise Inventory Equipment Accumulated Depreciation Accounts Payable Notes Payable 120,000 275,000 55,000 50,000 82,000 538,000 Lumanao, Capital Total P 745,000 P 745,000 Tajonera offered to invest cash to get a capital credit equal to one-half of Lumanao's capital after giving effect to the adjustments below. Lumanao accepted the offer. Valuation of some of the assets and liabilities of Lumanao, as agreed by the partners, are the following: • The merchandise is to be valued at P93,000. The accounts receivable is estimated to be 90% collectible. • The equipment is to be valued at P200,000. The partners also agreed that the name of the partnership will be Nacho Business. Required: 1. In the books of…

Answer 1

Question

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

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Problem No. 2 The trial balance of Cleint Lumanao Nacho Supplies on February 10, 2025, before accepting Shila Tajonera as partner is shown as follows: Account Title Debit Credit Ato Cash reening smuo P 100,000 Accounts Receivable 250,000 Allowance for Uncollectible Accounts P 20,000 o Merchandise Inventory Equipment Accumulated Depreciation Accounts Payable Notes Payable 120,000 275,000 55,000 50,000 82,000 538,000 Lumanao, Capital Total P 745,000 P 745,000 Tajonera offered to invest cash to get a capital credit equal to one-half of Lumanao's capital after giving effect to the adjustments below. Lumanao accepted the offer. Valuation of some of the assets and liabilities of Lumanao, as agreed by the partners, are the following: • The merchandise is to be valued at P93,000. The accounts receivable is estimated to be 90% collectible. • The equipment is to be valued at P200,000. The partners also agreed that the name of the partnership will be Nacho Business. Required: 1. In the books of…

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Answer 2

Question

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

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Answer 3

Question

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

Answer 6

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

Answer 7

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

Answer 8

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

Answer 9

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

Answer 10

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

Answer 11

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

Answer 12

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

Answer 13

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

Answer 14

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

Answer 15

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

Answer 16

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Answer 27

Ch. 9 - Briefly describe the difference between budgetary...Ch. 9 - What are standard costs? When are they set?Ch. 9 - Prob. 3Q Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - How do the master budget, flexible budget, and...

(a) Concept introduction: Total cost: It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs. The total cost of purchases for October.

Solution Summary: The author explains the concept of total cost, which includes all the costs that are incurred manufacturing a product.

Concept explainers

Videos

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

Chapter 9 Solutions

(a) Concept introduction: Total cost: It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs. The total cost of purchases for October.

Solution Summary: The author explains the concept of total cost, which includes all the costs that are incurred manufacturing a product.

Concept explainers

Videos

(a) Concept introduction: Total cost: It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs. The total cost of purchases for October.

(b) Concept introduction: Price variance: It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual. To compute: The direct materials price variance based on quantity purchased.

(c) Concept introduction: Quantity variance: It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product. To compute: The direct materials quantity variance based on quantity used.

(d) Concept introduction: Rate variance: It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour. To compute: The standard direct labour rate for October.

(e) Concept introduction: Efficiency variance: It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour. To compute: The direct labour efficiency variance for October.

Chapter 9 Solutions

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.