John Williams
Submitted by: Submitted by daddyjohn1976
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Pages: 3
Category: Business and Industry
Date Submitted: 07/14/2014 06:13 AM
John Williams
06/12/2014
Challenge 111
Chapter 7 E30, Chapter 8 E29, and chapter 9 E23.
Chapter 7 E30
a. Material price variance = 61,000 ($3 × 20,000)
= 61,000 60,000
= 1,000 U
Standard quantity of material = 3,900 × 4.8 = 18,720 gallons
Material quantity variance = (3 × 18,350) – (3 × 18,720)
= 55,050 – 56,160
= 1,110 F
b. Standard quantity of time = 3,900 × 1/3 hour = 1,300 hours
11,635.80 11,610 11,700
(Labor rate variance = 25.80 U) (labor effiency variance = 90.00 f) (total labor variance = 64.20 f )
c. Raw Material Inventory 60,000.00
Material Price Variance 1,000.00
A/P 61,000.00
Work in Process Inventory 56,160.00
Material Quantity Variance 1,110.00
Raw Material Inventory 55,050.00
Work in Process 11,700.00
Labor Rate Variance 25.80
Labor Efficiency Variance 90.00
Wages Payable 11,635.80
Chapter 8 E29
a. October collections:
A/R balance 11,000
October billings (100,000 x .15) 15,000
Total October collections 26,000
November collections:
October billings ($100,000 x .55) 55,000
November billings ($65,000 x .15) 9,750
Total November collections $64,750
December collections:
October billings (100,000 x .30) 30,000
November billings (65,000 x .55) 35,750
December billings (15,000 x .15) 2,250
Total December collections $68,000
b. October collections $26,000
October business costs (22,500)
Remainder 10/31 $3,500
November collections 64,750
Total $68,250
November business costs (22,500)
Remainder 11/30 $45,750
She could pay the 45,000 for the trip at the end of November. (yes)
c. If Irby pays for the trip and if everything works out , she would have 750 of cash on hand in the business. And she should probably not make such large cash expenditure at the end of November....
