# Material Variances :: Problems : Two or More Materials Stocks

 Problems » Solutions
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-CopperZinc 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

 Practice Problems

 Author Credit : The Edifier