Spam Inc

Spam Inc. had the following standard costs and plans for fiscal current year for the production'
of custom meat products
Plan 500,000 Plan
Direct Material .5 lbs meat per unit at $1.20 per lb
Direct Labor .6 hrs. at $12 per hour
Overhead $3.50 per unit variable ovhd
$600,000 fixed ovhd

Actual
490,000 units
235,200.00 lbs $272,832.00 
308,700.00 hrs $3,627,225.00 
$1,690,500.00 variable ovhd
$612,000.00 fixed ovhd

Calculate price and efficiency variances for all of the above and briefly explain what they mean
and why the variances may have occurred

#2
Whooper plans the following for the upcoming quarter:
Month Sales: Oct - $3,000,000.00 Nov - $3,450,000.00 Dec-$4,200,000.00 

The company projects cash collections a payments as follows:
Sales 10% cash, 30% collected current month, 70% month after sale

Cost of Goods Sold
Variable Cost 36% of sales

Fixed $300,000 per month incl $50,000 depreciation expense

Operating Expense
Variable Selling 10% of sales
Variable Admin 6% of sales

Fixed Selling and Admin expense $80,000 per month incl $10,000 depreciation

Variable costs are paid 70% in month incurred and 30% the following month

Fixed costs are paid monthly as they are incurred

In December an insurance payment of $20,000 is due

Accts Receivable - $860,000 of which $600,000 will be collected in Oct and the remainder in Nov

Accts Payable on Oct 1 is $400,000 and are expected to  be paid in Oct

Cash on hand on Oct 1 is $600,000

Minimum cash is $100,000; the company borrows at $100,000 increments at 1% monthly

Prepare a cash budget for the month of October (only) based on the above



#3



Powell Co. produces a flashlight that goes through four processes before
being transferred to finished goods. In the current month information for the pckg department 
(the last department in its process cost system) is shown below:

Units $
Beginning inventory 60,000 units $75,000.00 cost 

100% complete direct material and $60,000  materials cost

20% complete conversion costs and $15,000 conversion cost


Transferred in 600,000 units 
Ending inventory 20,000 units 
100% complete direct material
30% complete conversion 


Transferred out to finished goods 640,000  units

Beginning finished goods 40,000 units $82,000.00 
Ending finished goods ---- you must calculate 

Costs for Current Month
Direct Material   $660,000.00 
Conversion Costs   $538,900.00 

Sold 500,000 units $5.00 each
Marketing and Admin Expense $1,000,000.00 

Required
a. Indicate the number of equivalent units produced in the month
b.Indicate the cost per equivalent unit for labor and conversion
c. Prepare an income statement for Oct assuming that the company sold
the beginning finished goods inventory first, then the units produced in the current month
d.Indicate the value of the ending finished goods and ending work in process
e. If per unit costs ran at $2.05 each last period, comment on this period's performance