he accountant at Roland Industries provides you with the following information for the first quarter: Direct labor costs $ 232,000 Direct materials inventory, January 1 23,700 Direct materials inventory, March 31 20,100 Direct materials purchased during the quarter 301,500 Finished goods inventory, January 1 64,000 Finished goods inventory, March 31 83,400 Manufacturing overhead for the quarter 323,000 Work-in-process inventory, January 1 14,700 Work-in-process inventory, March 31 11,900 Required: a. Compute the following. Total prime cost Total conversion cost Total manufaturing costs Cost of goods manufatured Cost of goods sold
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.
The accountant at Roland Industries provides you with the following information for the first quarter:
| Direct labor costs | $ 232,000 |
|---|---|
| Direct materials inventory, January 1 | 23,700 |
| Direct materials inventory, March 31 | 20,100 |
| Direct materials purchased during the quarter | 301,500 |
| Finished goods inventory, January 1 | 64,000 |
| Finished goods inventory, March 31 | 83,400 |
| Manufacturing |
323,000 |
| Work-in-process inventory, January 1 | 14,700 |
| Work-in-process inventory, March 31 | 11,900 |
Required:
a. Compute the following.
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