Direct Materials Variances: Journal Entries Chypre, Inc., produces a cologne mist using a solvent mix (water...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/05/663b110d51529_021663b110d1f570.jpg)
![image](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/05/663b110d9ed59_021663b110d7bd24.jpg)
![image](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/05/663b110de98aa_021663b110dd1141.jpg)
Transcribed Image Text:
Direct Materials Variances: Journal Entries Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) that it sells to other companies for bottling and sale to consumers. Chypre developed the following standard cost sheet: Direct Material Mix Mix Proportion SP Standard Cost Solvent mix 760 gallons 0.95 $ 5.27 $ 4,005.20 Aromatic compounds 40 0.05 8,000.00 320,000.00 Total 800 gallons $324,005.20 Yield 720 gallons On May 2, Chypre produced a batch of 1,000 gallons with the following actual results: Direct Material Solvent mix Actual Mix 945 gallons 55 Aromatic compounds Yield Total 1,000 gallons 880 gallons Chypre, Inc., purchased the amount used of each direct material input on May 2 for the following actual prices: solvent mix for $5.20 per gallon, and aromatic compound for $8,010 per gallon. Required: 1. Compute the direct materials price variances. If required, round your answers to the nearest cent. Solvent mix: MPV $ Aromatic compounds: MPV $ Journalize the direct materials price variances. If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Solvent mix: Aromatic compounds: Combined: 2. Compute the direct materials usage variance. In your computations, round the standard quantities to two decimal places. Round your final answer to the nearest cent. Journalize the direct materials usage variances. In your computations, round the standard quantities to two decimal places. Round your final answers to the nearest cent. If an amount box does not require an entry, leave it blank. Solvent mix: Aromatic compounds: Combined Direct Materials Variances: Journal Entries Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) that it sells to other companies for bottling and sale to consumers. Chypre developed the following standard cost sheet: Direct Material Mix Mix Proportion SP Standard Cost Solvent mix 760 gallons 0.95 $ 5.27 $ 4,005.20 Aromatic compounds 40 0.05 8,000.00 320,000.00 Total 800 gallons $324,005.20 Yield 720 gallons On May 2, Chypre produced a batch of 1,000 gallons with the following actual results: Direct Material Solvent mix Actual Mix 945 gallons 55 Aromatic compounds Yield Total 1,000 gallons 880 gallons Chypre, Inc., purchased the amount used of each direct material input on May 2 for the following actual prices: solvent mix for $5.20 per gallon, and aromatic compound for $8,010 per gallon. Required: 1. Compute the direct materials price variances. If required, round your answers to the nearest cent. Solvent mix: MPV $ Aromatic compounds: MPV $ Journalize the direct materials price variances. If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Solvent mix: Aromatic compounds: Combined: 2. Compute the direct materials usage variance. In your computations, round the standard quantities to two decimal places. Round your final answer to the nearest cent. Journalize the direct materials usage variances. In your computations, round the standard quantities to two decimal places. Round your final answers to the nearest cent. If an amount box does not require an entry, leave it blank. Solvent mix: Aromatic compounds: Combined
Expert Answer:
Answer rating: 100% (QA)
Solution1 Material Price Variance can be computed as Actual Price Standard Price Actual Quantity For... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
Students also viewed these accounting questions
-
8 A 10-year bond making half-yearly coupon payments at 6% p.a. is purchased at par and held to maturity. Calculate the investor's holding-period yield, given that the coupons are reinvested at 5%...
-
A project has the following expected cash flows: CF0-$500, CF = $200, CF2 = $200, and CF3 If the projects cost of capital is 9%, what is the NPV?
-
Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) that it sells to other companies for bottling and sale to consumers. Chypre...
-
In Problems 2734, the given pattern continues. Write down the nth term of a sequence {a n } suggested by the pattern. 2 1 1 ,3,-, 5, 7 6 ....: 8
-
Dwaine Ebsen, a minor, lived with his mother, Violet, who was a widow. For personal and lifestyle reasons, they could not get along, so Dwaine decided to move out. From the time he moved, he did not...
-
The National Novel Writing Association states that the average novel is at least 50,000 words. A particularly ambitious writing club at a college-preparatory high school had randomly selected members...
-
You are required to calculate the overhead variances from the following data. (a) Budgeted for \( 6,000\) variable overhead and 1,000 machine hours. \(\begin{array}{lr}\text { Actual overhead } & ...
-
During 2014 AFCO started a construction job with a contract price of $2,500,000. The job was completed in 2016. The following information is available. Instructions (a) Compute the amount of gross...
-
The management of Polymer Corporation, a plastics manufacturer, is considering the purchase of machinery that would cost $450,000 and have no salvage value at the end of its 15 year useful life. The...
-
For the dynamic system shown, m, 1/4 kg, m = 1 kg, k, = k = k, = 1 N/m, b b =b = 0.1 N-s/m, f(t) = 3 sint and f(t) = 2 cos 2t determine 1. The equations of motion. 2. The equations of motion in...
-
Oakmead is the area head office of a Social Services department in the South of England. Its catchment area deals with around100 000 people. The range of services includes an intake unit, devoted to...
-
It was disclosed that Elon Musk will be acquiring Twitter for $44B. Discuss what you consider to be some of the strategic consequences of this acquisition.
-
Prepare to negotiate a contract with Porto. Develop the following for the negotiation: a) Specific Objectives (Remember to use SMART). Remember that price is not the only variable subject to...
-
Throughout the MBA I am sure you have had to introduce yourself to your teachers and peers, however, there must be things that have changed from the time you started your MBA, maybe your goals for...
-
Consider the case where the asteroid's distance from the Sun varied during its orbit. a. Would its kinetic energy change during its orbit? Explain. b. Would its potential energy change change during...
-
We have to accept or reject a large shipment of items. For quality control purposes, we collect a sample of 200 items and find 24 defective items in it. The manufacturer claims that at most one in 10...
-
A sample statistic will not change from sample to sample. Determine whether the statement is true or false. If it is false, rewrite it as a true statement.
-
Three bases of position power are ____________. (a) reward, expertise, and coercive power (b) legitimate, experience, and judgment power (c) knowledge, experience, and judgment power (d) reward,...
-
What are power and influence?
-
What are the key sources of power and influence?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App