Reference no: EM133007792

Question 1 - Like Manufacturing Company has established a standard cost as follows:

Material A- P3 per unit

Material B- 7 per unit

In December, the company purchased 10,000 units of material A and 5,000 units of material B. With the exception of 800 unit cost of P3.50. The company purchased 4,500 units of material B at a standard cost and 500 units at a unit cost of P8.

According to standards, two units of material A and one unit of material B should be used to manufacture each unit of product. In January, 4,000 units of product were manufactured and 8,600 units of material A were used and 4,100 units of material B were used.

Required -

1. What is the total materials price variance on the purchases for December?

2. What is the total materials price variance on the usage during January?

3. What is the materials usage variance for January?

Question 2 - WIP, Beg- 300 units, 35% complete for materials

Started in August- 1,630 units

Finished and Transferred- 1,830 units

WIP, end- ? units, 20% complete for materials

3 units of materials at a standard price of P4 per unit, are required for each unit of product. The actual cost of materials for the month was P25,000 at an actual price of P5 per unit of materials

Required -

1. What is the material price variance for the month?

2. If the company is using FIFO method, what is the material quantity variance?

3. If the company is using the weighted average method, what is the materials quantity variance?