# Single Material : Problems involving Losses and Stocks :: Material Variances : Problems & Solutions

# Problem 1

Quantity of groundnut = 4 kg.

Price of groundnut = 2. 45 per kg

Actual production data:

Production during a week = 1,000 kg

Quantity used = 4,600 kg.

Price of groundnut = 2. 75 per kg.

Calculate all possible material variances:

**Solution**

[MCV = − 2,850 ; MPV = − 1,380; MUV/MQV = − 1,470; MMV = 0 ; MYV/MSUV = − 1,470;]

# Problem 2

Standard: | |

Materials for 70 kg. of Finished Goods | 100kg. |

Price of materials | Re.1 per kg. |

Actual: | |

Output | 2,10,000 kg. |

Material used | 2,80,000 kgs |

Cost of materials | 2,52,000 |

**Solution**

[MCV = + 48,000 ; MPV = + 28,000; MUV/MQV = + 20,000; MMV = 0 ;MYV/MSUV = − + 20,000;]

# Problem 3

Material Purchased Value of Materials Purchased Standard Quantity for one unit Standard Rate of Materials Opening Stock of Materials Closing Stock of Materials Finished goods | 4000 kg. 10,000 2.5 kg. 2 per kg. 1000 kg. 2000 kg. 1000 units. |

**Solution**

[MCV = − 3,000 ; MPV = − 2,000; MUV/MQV = − 1,000; MMV = 0 ;MYV/MSUV = − 1,000;]

# Problem 4

Opening stock | 100 kgs |

Purchased during the period | 3,000 kg. cost 6,200 |

Standard | 2 kg. per unit at 2 per kg. |

Original budget | 2,000 units |

Production | 1,600 |

Sales | 1,400 units |

Closing stock | 200 kg. |

**Solution**

[MCV = + 400 ; MPV = − 200; MUV/MQV = + 600; MMV = 0 ;MYV/MSUV = − + 600;]

# Problem 5

Quantity of material purchased : 8,000 lbs

Value of material purchased : 56,000.

Standard of quantity of material required for one unit of finished product : 35 lbs.

Standard rate of material : 6.50 per lb.

Opening stock of material : 1,250 lbs

Finished production during the period : 250 units

**Solution**

[MCV = − 7,250 ; MPV = − 4,000; MUV/MQV = − 3,250; MMV = 0 ; MYV/MSUV = − 3,250;]

# Problem 6

Quantity of material purchased : 3,000 units

Value of material purchased : 9,000.

Standard of quantity of material required for one Tonne of finished product : 25 units.

Standard rate of material : 2 per unit.

Opening stock of material : nil

Closing stock of material : 500 units

Finished production during the period : 80 tonnes

**Solution**

[MCV = − 4,000 ; MPV = − 3,000; MUV/MQV = − 1,000; MMV = 0 ;MYV/MSUV = − 1,000;]

# Problem 7

In a cost period:

Opening stock was 500 kg @ 4.50 per kg.

Purchases made 2,500 kg @ 5 per kg.

Consumption 650 kg.

Calculate

- Cost Variance
- Usage Variance
- Price Variance, when it is calculated
- during the period of purchase
- during the period of issue on FIFO basis
- during the period of issue on LIFO basis.

- Mix Variance
- Yield Variance

**Solution**

[MCV = − 1,925; MPV = − 1,250; MUV/MQV = − 675; MMV = 0 ;MYV/MSUV = − 675;]

# Problem 8

8 kg at 8.00/kg = 64 per unit

Budgeted production in January was 1,250 units.

The following details relate to actual materials purchased and issued to production during January, when actual production was 1,200 units.

Material purchased 8200 kg costing 68,880

Materials issued to production 7125 kg.

Find the material variances to be reported.

**Solution**

[MCV = + 16,520; MPV = − 3,280; MUV/MQV = + 19,800; MMV = 0 ;MYV/MSUV = + 19,800;]