| 01. |
From the data given below, calculate.
| (a) |
Individual material price variances for the two materials X and Y assuming that price variances are calculated at the time of purchase; |
| (b) |
Individual material usage variances for materials X and Y assuming that there was no work-in-progress either at the commencement or at the end of the period. |
| |
'X' |
'Y' |
|
Qty.
Kg. |
Value
Rs. |
Qty.
Kg. |
Value
Rs. |
Raw Material Purchase
Issues to works
Works stock of material : -
Opening
Closing
|
2,000
2,150
300
200
|
4,000
–
–
–
|
5,000
3,950
1,000
1,250
|
6,250
–
–
–
|
| Standard price:- | Material X - Rs 1.90 per kg. |
| Material Y - Rs 1.30 per kg. |
Standard usage:-
| |
Marterial X |
Marterial Y |
| Producti A |
1 kg. |
1 kg. |
| Producti B |
0.5 kg. |
1 kg. |
Output during the period:-
Product A - 1,130 units
Product B - 2,550 units
Solution
|
| 02. |
A brass foundry, making castings which are transferred to the machine shop of the same company at a standard prices, uses a standard costing system.
Basic standards with regard to materials, stock of which are kept at standard prices are as follows:
Standard Mixture
Standard Price
Standard cost in melt
|
70% Copper
30% Zinc
Copper Rs. 240 per tonne
Zinc Rs. 65 per tonne
5% of input
|
Figures in respect of a costing period are as follows:
| Opening stocks |
Copper |
100 tonnes |
|
Zinc |
60 tonnes |
| Closing stocks |
Copper |
110 tonnes |
|
Zinc |
50 tonnes |
Purchases-Copper
Zinc |
300 tonnes Cost Rs. 73,250
100 tonnes Cost Rs. 6,250 |
| Material melted |
400 tonnes |
| Casting Produced |
375 tones |
Present figures showing all possible material variances.
Solution
|
| 03. |
Adhrak Ltd. Produces an article by blending two basic materials. It operates a standard costing system and the following standards have been set for raw materials:
Material
|
Standard
Mix |
Standard Price
per kg. |
| A |
40% |
Rs. 4.00 |
| B |
60% |
Rs. 3.00 |
The standard loss in processing is 15%
During April 1995 the company produced 1,700 kgs.of finished output.
The position of stocks and purchases for the month of April 1995 is as under:
| Material |
Stock on
1-4-95 |
Stock on
30-4-95 |
Purchased during
April 1995 |
| |
Kgs. |
Kgs. |
Kgs. |
Costs (Rs.) |
| A |
35 |
5 |
800 |
3,400 |
| B |
40 |
50 |
1,200 |
3,000 |
Calculate all the material variances.
Solution
|
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cost,material,labour,fixed,variable,overhead,sales,profit,variance,reconciliation,standard,actual,formula interpretation,accounting.
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cost,material,labour,fixed,variable,overhead,sales,profit,variance,reconciliation,standard,actual,formula interpretation,accounting.
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