hich of the following Answers below best fits in each black space? The ending balance of works in process inventory is________
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.
Nuvoview Manufacturing uses a normal cost system and had the following data available for 2019:
Direct materials purchased on account $145,000
Direct materials requisitioned 88,000
Direct labor cost incurred 127,000
Factory overhead incurred 148,000
Cost of goods completed 299,000
Cost of goods sold 250,000
Beginning direct materials inventory 34,000
Beginning WIP inventory 70,000
Beginning finished goods inventory 55,000
Overhead application rate (% DL costs $) 130%
Which of the following Answers below best fits in each black space?
The ending balance of works in process inventory is________
A: Beginning direct materials inventory B: Beginning works in process inventory C: Cost of goods complete D: Cost of goods sold E: Direct labor incurred
F: Direct materials purchased G: Direct materials requisitioned H: Actual manufacturing overhead I: Applied manufacturing overhead J: Ending work in process inventory
K: $88,000 L: $117,350 M: $187,000.
Put the formula you would use together using the pieces bellow:
_________+________+_________+___________-___________= ending works in process inventory.
A: Beginning direct materials inventory B: Beginning works in process inventory C: Cost of goods complete D: Cost of goods sold E: Direct labor incurred
F: Direct materials purchased G: Direct materials requisitioned H: Actual manufacturing overhead I: Applied manufacturing overhead J: Ending work in process inventory
K: $88,000 L: $117,350 M: $187,000.
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