Cost of goods manufactured schedule (LO 3) Rocket Company produces small gasoline-powered engines for model airplanes. Mr. Clemens, Rocket's CFO, has presented you with the following cost information: Direct Materials Inventory, beginning $80,000 Direct Materials Inventory, ending $122,000 Work in Process Inventory, beginning $140,000 Work in Process Inventory, ending $ 95,000 Direct labor $780,000 Direct materials purchases $940,000 Insurance, factory $50,000 Depreciation, factory $ 22,000 Depreciation, executive offices $15,000 Indirect labor $220,000 Utilities, factory $17,000 Utilities, executive offices $ 8,000 Property taxes, factory $18,000 Property taxes, executive offices $14,000 Required Using this cost information, prepare a cost of goods manufactured schedule for Mr. Clemens.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Cost of goods manufactured schedule (LO 3) Rocket Company produces small gasoline-powered engines for model airplanes. Mr. Clemens, Rocket's CFO, has presented you with the following cost information:
| Direct Materials Inventory, beginning |
$80,000
|
| Direct Materials Inventory, ending |
$122,000
|
| Work in Process Inventory, beginning |
$140,000
|
| Work in Process Inventory, ending |
$ 95,000
|
| Direct labor |
$780,000
|
| Direct materials purchases |
$940,000
|
| Insurance, factory |
$50,000
|
| Depreciation, factory |
$ 22,000
|
| Depreciation, executive offices |
$15,000
|
| Indirect labor |
$220,000
|
| Utilities, factory |
$17,000
|
| Utilities, executive offices |
$ 8,000
|
| Property taxes, factory |
$18,000
|
| Property taxes, executive offices |
$14,000
|
Required
Using this cost information, prepare a cost of goods manufactured schedule for Mr. Clemens.
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