Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $151 per unit. Its standard cost per unit produced $121 and its selling and administrative expenses totaled $243,000. Forsyth does not have any varlable manufacturing overhead costs and It recorded the following variances during the year: Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Fixed overhead budget variance Fixed overhead volume variance 58,100 F $11,800 U $ 5,100 U $6,000 F $44.100 F $13,600 F Required: 1. When Forsyth closes its standard cost varlances, the cost of goods sold will increase (decrease) by how much? 2. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much? The cost of goods sold wa

Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $151 per unit. Its standard cost per unit produced $121 and its selling and administrative expenses totaled $243,000. Forsyth does not have any varlable manufacturing overhead costs and It recorded the following variances during the year: Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Fixed overhead budget variance Fixed overhead volume variance 58,100 F $11,800 U $ 5,100 U $6,000 F $44.100 F $13,600 F Required: 1. When Forsyth closes its standard cost varlances, the cost of goods sold will increase (decrease) by how much? 2. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much? The cost of goods sold wa

Name: Forsyth Company manufactures one product, it does not maintain any be
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Description: Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard costsystem. During the year, the company produced and sold 10,000 units at a price of $151 per unit. Its standard cost per un

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Alvarado Company produced 6,200 units of product that required 2.5 standard direct labor hours per unit. The standard variable overhead cost per unit is $3.00 per direct labor hour. The actual variable factory overhead was $47,800. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
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orsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $154 per unit. Its standard cost per unit produced is $124 and its selling and administrative expenses totaled $244,500. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year: Materials price variance $ 8,400 F Materials quantity variance $ 12,100 U Labor rate variance $ 5,400 U Labor efficiency variance $ 6,300 F Fixed overhead budget variance $ 4,400 F Fixed overhead volume variance $ 13,900 F 1. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much? 2. Prepare an income statement for the year.
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