Deja Brew Company reported the following for the most recently completed fiscal year: Work-in-Process Inventory, Beginning $63,500 Raw Materials Purchased $109,600 Work-in-Process Inventory, Ending 58,200 Direct Labor 180,800 Finished Goods Inventory, Beginning 30,600 Manufacturing Overhead 95,900 Finished Goods Inventory, Ending 32,500 Cost of Goods Manufactured 391,200 Calculate cost of goods sold for the year.
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.
Deja Brew Company reported the following for the most recently completed fiscal year:
| Work-in-Process Inventory, Beginning | $63,500 | Raw Materials Purchased | $109,600 | |
| Work-in-Process Inventory, Ending | 58,200 | Direct Labor | 180,800 | |
| Finished Goods Inventory, Beginning | 30,600 | Manufacturing |
95,900 | |
| Finished Goods Inventory, Ending | 32,500 | Cost of Goods Manufactured | 391,200 |
Calculate cost of goods sold for the year.
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