Question

Exercise 223

Fill in the appropriate amounts in the following Adam Corporation variance report.

Exercise 223 Fill in the appropriate amounts in the following Adam Corporation variance report. (Round actual and standard price to 2 decimal places, e.g. 52.75.) ADAM CORPORATION for Week Ended January 9, 2016 Type of Materials Actual Price Standard Price Quantity Purchased Price Variance Explanation $5.00 $6,000 Brown $5.25 Price increase Rush order Bought larger quantity lbs. 8,000 oz. 22,000 units 1,600 Unfavorable Green 3.25 White 660 Favorable 50.45 Click if you would like to Show Work for this question:

Answer 1

ADAM CORPORATION
Variance Report- Purchasing Department
For Week Ended January 9, 2016
Types of materials	Quantity purchased	Actual price	Standard Price	Price variance	Explanation
Brown	24000 lbs.	$ 5.25	$ 5.00	$ 6000 Unfavorable	Price Increase
Green	8000 oz.	3.45	3.25	1600 Unfavorable	Rush order
White	22000 units	$ 0.45	0.48	660 Favorable	Bought larger quantity

Calculation for the Quantity purchased of Brown

(5.00-5.25)*X= 6000

X= 24000

Calculation for the actual price of Green

(3.25-X)*8000= -1600

26000-8000X = -1600

27600= 8000X

X= 3.45

Calculation for the standard price of White

(0.45-X)*22000= 660

9900-22000X= 660

10560= 22000X

X= 0.48