Draper has decided to manufacture billing software to sell to its clients. During the first month of manufacturing, Draper incurred the following costs: Inventories: Beginning Ending Materials 10,800 10,300 Work in Process 0 21,000 Finished Goods 0 31,500 Other Information: Direct Materials Purchased 19,000 Plant Utilities 10,000 Plant Janitorial Services 700 Plant Rent 13,000 Sales Salaries Expense 5,000 Customer Hotline Expense 18,000 Delivery Expense 1,700 Direct Labor 190,000 Sales Revenue 750,000 Prepare a Schedule of Cost of Goods Manufactured and an Income Statement for the month ended January 31, 2020. If Draper sells 19,750 software products for the month, how much does it cost to manufacture one unit?
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.
*PLEASE CORRECT ANY INCORRECT INPUTS AS WELL*
Requirement 3
Draper has decided to manufacture billing software to sell to its clients. During the first month of manufacturing, Draper incurred the following costs:
|
Inventories: |
Beginning |
|
Ending |
|
Materials |
10,800 |
|
10,300 |
|
Work in Process |
0 |
|
21,000 |
|
Finished Goods |
0 |
|
31,500 |
|
|
|
|
|
|
Other Information: |
|
|
|
|
Direct Materials Purchased |
19,000 |
Plant Utilities |
10,000 |
|
Plant Janitorial Services |
700 |
Plant Rent |
13,000 |
|
Sales Salaries Expense |
5,000 |
Customer Hotline Expense |
18,000 |
|
Delivery Expense |
1,700 |
Direct Labor |
190,000 |
|
Sales Revenue |
750,000 |
|
|
- Prepare a Schedule of Cost of Goods Manufactured and an Income Statement for the month ended January 31, 2020.
- If Draper sells 19,750 software products for the month, how much does it cost to manufacture one unit?
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