Required

16-29
Additional information:
The total Ottawa market is expected to be 1,000,000 kilograms in sales volume for August 2018. The
actual total Ottawa market for August 2018 was 960,000 kilograms in sales volume.
Required:
Compute the market-share and market-size variances for Momma's Pan in August 2018. Calculate all
variances in contribution-margin terms. Comment on the results.
Additional information:
The total Ottawa market is expected to be 1,000,000 kilograms in sales volume for August 2018. The
actual total Ottawa market for August 2018 was 960,000 kilograms in sales volume.
Required:
Compute the market-share and market-size variances for Momma's Pan in August 2018. Calculate all
variances in contribution-margin terms. Comment on the results.
1) EU
PU DM-Chem P DM-Chem Q CC
WIP, beg -
+Started 50,000.00
To account for 50,000.00

Completed and transferred 35,000.00 35,000.00 35,000.00 35,000.00

+WIP, end 100%, 0%, 66.7% 15,000.00 15,000.00 - 10,000.00
Accounted for 50,000.00 50,000.00 35,000.00 45,000.00

Prod. Costs DM-Chem P DM-Chem Q CC

WIP, beg $ - $ - $ -
+Costs added $ 455,000.00 $ 250,000.00 $ 70,000.00 $ 135,000.00
To account for $ 455,000.00 $ 250,000.00 $ 70,000.00 $ 135,000.00

DM-Chem P DM-Chem Q CC
To account for $ 250,000.00 $ 70,000.00 $ 135,000.00
/EU 50,000.00 35,000.00 45,000.00
Cost per EU $ 5.00 $ 2.00 $ 3.00

2a&b) Prod. Costs DM-Chem P DM-Chem Q CC

Completed and transferred $ 350,000.00 $ 175,000.00 $ 70,000.00 $ 105,000.00
+WIP, end $ 105,000.00 $ 75,000.00 $ - $ 30,000.00
Accounted for $ 455,000.00 $ 250,000.00 $ 70,000.00 $ 135,000.00

3)
There would be no difference between FIFO and WA as there is no BI.