Income Statement Indicating Standard Cost Variances The following data were taken from the records of Griggs Company for December: Administrative expenses $100,800 Cost of goods sold (at standard) 550,000 Direct materials price variance—unfavorable 1,680 Direct materials quantity variance—favorable (560) Direct labor rate variance—favorable (1,120) Direct labor time variance—unfavorable 490 Variable factory overhead controllable variance—favorable (210) Fixed factory overhead volume variance—unfavorable 3,080 Interest expense 2,940 Sales 868,000 Selling expenses 125,000 Prepare an income statement for presentation to management. Enter all amounts as positive numbers. If an amount box does not require an entry leave it blank or enter "0". Griggs Company Income Statement For the Month Ended December 31 Sales $fill in the blank 2 Cost of goods sold-at standard fill in the blank 4 Gross profit-at standard $fill in the blank 6 Favorable Unfavorable Variances from standard cost: Direct materials price $fill in the blank 8 $fill in the blank 9 Direct materials quantity fill in the blank 11 fill in the blank 12 Direct labor rate fill in the blank 14 fill in the blank 15 Direct labor time fill in the blank 17 fill in the blank 18 Variable factory overhead controllable fill in the blank 20 fill in the blank 21 Fixed factory overhead volume fill in the blank 23 fill in the blank 24 Net variance from standard cost-unfavorable fill in the blank 26 Gross profit $fill in the blank 28 Operating expenses: Selling expenses $fill in the blank 30 Administrative expenses fill in the blank 32 fill in the blank 33 Income from operations $fill in the blank 35 Other expense: Interest expense fill in the blank 37 Income before income tax

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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Income Statement Indicating Standard Cost Variances

The following data were taken from the records of Griggs Company for December:

Administrative expenses	$100,800
Cost of goods sold (at standard)	550,000
Direct materials price variance—unfavorable	1,680
Direct materials quantity variance—favorable	(560)
Direct labor rate variance—favorable	(1,120)
Direct labor time variance—unfavorable	490
Variable factory overhead controllable variance—favorable	(210)
Fixed factory overhead volume variance—unfavorable	3,080
Interest expense	2,940
Sales	868,000
Selling expenses	125,000

Prepare an income statement for presentation to management. Enter all amounts as positive numbers. If an amount box does not require an entry leave it blank or enter "0".

Griggs Company
Income Statement
For the Month Ended December 31
Sales			$fill in the blank 2
Cost of goods sold-at standard			fill in the blank 4
Gross profit-at standard			$fill in the blank 6
	Favorable	Unfavorable
Variances from standard cost:
Direct materials price	$fill in the blank 8	$fill in the blank 9
Direct materials quantity	fill in the blank 11	fill in the blank 12
Direct labor rate	fill in the blank 14	fill in the blank 15
Direct labor time	fill in the blank 17	fill in the blank 18
Variable factory overhead controllable	fill in the blank 20	fill in the blank 21
Fixed factory overhead volume	fill in the blank 23	fill in the blank 24
Net variance from standard cost-unfavorable			fill in the blank 26
Gross profit			$fill in the blank 28
Operating expenses:
Selling expenses		$fill in the blank 30
Administrative expenses		fill in the blank 32	fill in the blank 33
Income from operations			$fill in the blank 35
Other expense:
Interest expense			fill in the blank 37
Income before income tax

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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