2 PR 23-2B Flexible budgeting and variance analysis Women's Coats Men's Coats Actual production 4,400 5,800 Actual Price per Unit Actual Quantity Purchased and Used Obj. 1, 2, 3 $1.90 per Ib. Filler 48,000 Liner 8.20 per yd. 85,100 I'm Really Cold Coat Company makes women's and men's coats. Both products Actual Labor Rate Actual Labor Hours Used $14.10 per hr. 13.30 per hr. Women's coats 1,825 require filler and lining material. The following planning information has been made Excel Men's coats 2,800 available: Standard Amount per Unit Women's Coats 4.0 lb. 7.0 yds. Men's Coats Standard Price per Unit The expected beginning inventory and desired ending inventory were realized. 5.2 lb. 9.4 yds. 0.50 hr. $2.00 per Ib. 8.00 per yd. Filler 5.2 Ib. Instructions Liner Standard labor time 0.40 hr Women's Coats 5,000 units $14.00 per hr. 1. Prepare the following variance analyses for both coats and the total, based on the actual results and production levels at the end of the budget year: Men's Coats Planned production 6,200 units Standard labor rate $13.00 per hr. a. Direct materials price, quantity, and total variance Answer+ I'm Really Cold Coat Company does not expect there to be any beginning or ending inventories of b. Direct labor rate, time, and total variance filler and lining material. At the end of the budget year, I'm Really Cold Coat Company experienced 2. Why are the standard amounts in part (1) based on the actual production at the end of the the following actual results: year instead of the planned production at the beginning of the year?
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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