Company C3 uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income. The following management information is avaialble:

Sales: Actual 4694 units; Budget 6054 units

Sales: Actual $ 215534;  Budget $ 305086

Variable costs: Actual $ 138741; Budget $ 190911

Fixed costs: Actual $ 459875; Budget $ 375498

The company's sales price variance for the period is (favorable +; unfavorable -):

The Cutting Department is the first stage of Company X's production cycle. BWIP for this

department was 24% complete as to conversion costs. EWIP was 55% complete. Information as to conversion costs in the Cutting Department for January is presented in the next column.

Using the FIFO method, what was the conversion cost of WIP in the Cutting Department on January 31 (assuming no spoilage)?

Company YY had 20325 units of BWIP in Department 1, which were100% complete as to material costs and 19% complete as to conversion costs. During the month, 163842 units were started in Department 1 and 170492 units were completed and transferred to Department 2. EWIP was 100% complete as to material costs and 35% complete as to conversion costs. By what amount would the equivalent units for conversion costs for the month differ if the FIFO method were used instead of the weighted-average method?

Department Y had the following equivalent unit product costs, computed under Weighted Average method:

• Direct Materials = $0,5
• Conversion costs = $1,6
• Transferred in costs= $4

Direct Materials are introduced at the end of the process in this department. There are 3368 units (40% complete as to conversion costs) in EWIP. The normal spoilage rate is 7,2%.

How much is the cost of each completed unit?

The purpose of the equivalent-unit computation is to ________.

Company C1 uses a flexible budget to analyze its performance when comparing budgeted and actual operating income.

The following information is available:

• Units sold: 4008 Actual (A); 6193 Budget (B)
• Sales revenue: $ 227795 (A);  $ 314658 (B)
• Variable costs: $ 144851 (A); $ 185298 (B)
• Fixed costs: $ 116475 (A); $ 427896 (B)

Calculate the sales quantity variance (+ favorable; - unfavorable)

When computing the percentage of completion of the current period’s ending work-in-process (EWIP) inventory, an error was made. The error resulted in assigning a higher percentage of completion to each component of the inventory than actually was the case. Consequently, the following were misstated:

1. The computation of total equivalent units

2. The computation of costs per equivalent unit

3. Costs assigned to cost of goods completed for the period

What were the effects of the error for items 1,2 and 3?

Department Y had the following equivalent unit product costs, computed under Weighted Average method:

• Direct Materials = $1,0
• Conversion costs = $2,5
• Transferred in costs= $6

Direct Materials are introduced at the end of the process in this department. There are 4002 units (40% complete as to conversion costs) in EWIP. The normal spoilage rate is 1,6% and total spoilage was 5,6%

How much is the cost of each completed unit?

During October, Company X completed 50110 units costing $627451, exclusive of spoilage allocation. Of these completed units, 50% were sold during the month. An additional 9223 units, costing $79821, were 40% completed at October 31. All units are inspected between the completion of manufacturing and the transfer to finished goods inventory. Normal spoilage for the month was $15609, and abnormal spoilage of $54332 was also incurred during the month.

The portion of total spoilage that should be charged against revenue in October is:

Department D2 is the second stage of a Company’s production cycle. On May 1, the BWIP contained 25,000 units 60% complete as to conversion costs. During May, 100,000 units were transferred in from the first stage of the Company's production cycle. On May 31, EWIP contained 21737 units 80% complete as to conversion costs. Materials are added at the end of the process. Using the weighted-average method, the EUP for Direct Material on May 31 were: