Reference no: EM132229701
For a given month Konway Kola Kompany produced 93,872 cases of product (24 bottles each case) as reported by the Production Departments.
Empty bottles from official Accounting records:
Beginning physical inventory 115,865
Purchases during the month 2,304,000
End of month physical inventory 99,450
Calculate:
1a. The reported usage of bottles, per production reports
1b. The inventory disappearance, per Accounting numbers?
1c. The empty bottle variance for the month – calculate both the number of bottles and the percentage of inventory disappearance?
1d. What are three possible causes for the variance?
1e. In addition to material variance, what other variances might we experience?