(d) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account, clearly showing the balance before closing the account. State the journal entries necessary to dispose of the variance. Assume that the manufacturing overhead variance is immaterial. (e) What is the balance in the Cost of Goods Sold account after the adjustment? (f) Compute Elite’s gross profit earned on the jobs sold, after adjusting for the manufacturing overhead variance
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.
(d) Post the manufacturing
showing the balance before closing the account. State the
the variance. Assume that the manufacturing overhead variance is immaterial.
(e) What is the balance in the Cost of Goods Sold account after the adjustment?
(f) Compute Elite’s gross profit earned on the jobs sold, after adjusting for the manufacturing overhead
variance
(g)
on March 31, the end of the quarter.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
