Question

19 At the beginning of October, the following was determined for a particular product Standard unity of material per unit produced Standard Price of material Budgeted Units to be produced The following data pertain to operations concerning the product for October Actual Cost of materials purchased $ 150,000 Beginning Materials aventory Ending Materials Inventory 2.000 6 Actual Units Produced 8.000 units Materials Purchase Price Variance 15.000 Favorable What was the Materials Ouantity Variance for October? $4,000 Unfavorable $5.000 Unfavorable $15,000 Unfavorable $26,000 Favorable None of the above 20 Hoover Corporation has a process costing system in which it uses the weighted average method. Its partial data for the month of September are: The equivalent units for conversion costs for the month: 47,500 units The beginning work-in-process inventory (60% complete with respect to conversion costs): 15,000 units The ending work-in-processP inventory (75% complete with respect to conversion costs): 11,000 units The number of units started during the month was: 32,500 units B. 35,250 units C. 43,250 units 39,250 units E. None of the above Page 12 of 12

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer 2 Part 19) 3 The correct answer is A) $ 4000 Unfavourable 5 Firstly we have to calculate the quantity purchased 6 = actual cost + purchase price variance/ standard cost per unit 7 =(150000+15000)/2 8 = 82500 units 10 Units used = opening + purchases -ending units 11 = 1500+82500-2000 12 = 82000 units 14 Material qty variance = (standard qty-actual qty)* Standard price 15 =((8000*10)-82000)*10 16 = -$ 4000 17 = $ 4000 unfavourable 19 Thus the correct answer is A) $ 4000 unfavourable 21 Part 20) 22 The correct answer is B) 35250 units 24 Equivalent units of conversion = units completed and transferred +(units in ending inventory * 75%) 25 47500 = units completed and transferred out +(11000*75%) 26 47500-8250 = units completed and transferred out 27 39250 units = units completed and transferred out 29 Number of units started = ending units + units started and completed - beginning units 30 = 11000+39250-15000 31 = 35250 units 33 Thus the correct answer is 35250 units