Laramie Technologies had the following data: Cost of materials used $50,000 Direct labor costs 56,000 Factory overhead 28,000 Work in process inventory, beginning 45,000 Work in process inventory, ending 32,000 Determine the cost of goods manufactured.
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.
Laramie Technologies had the following data:
| Cost of materials used | $50,000 |
| Direct labor costs | 56,000 |
| Factory overhead | 28,000 |
| Work in process inventory, beginning | 45,000 |
| Work in process inventory, ending | 32,000 |
Determine the cost of goods manufactured.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
