Handy Crafts manufactures to customers’ specifications. The company uses a job order cost system and, for the month of May 2020, summarized the following information: Beginning WIP (5 partially completed jobs) ₱0,300,000 Orders completed (18) 2,400,000 Orders shipped out (14) 2,000,000 Materials requisitioned 1,700,000 Direct Labor Cost 0,800,000 Overhead 150% of direct labor cost What is the month-end work in process? Show solution Group of answer choices ₱ 0,800,000 ₱ 1,600,000 ₱ 1,400,000 ₱ 0,700,000
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.
Handy Crafts manufactures to customers’ specifications. The company uses a
|
Beginning WIP (5 partially completed jobs) |
₱0,300,000 |
|
Orders completed (18) |
2,400,000 |
|
Orders shipped out (14) |
2,000,000 |
|
Materials requisitioned |
1,700,000 |
|
Direct Labor Cost |
0,800,000 |
|
|
150% of direct labor cost |
What is the month-end work in process? Show solution
Group of answer choices
₱ 0,800,000
₱ 1,600,000
₱ 1,400,000
₱ 0,700,000
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