Management of Lasalyano Corporation has asked for your help as an intern in preparing some key reports for April. The beginning balance in the raw materials inventory account was P30,000. During the month, the company made raw materials purchases amounting to P67,000. At the end of the month, the balance in the raw materials inventory account was P35,000. Direct labor cost was P25,000 and manufacturing overhead was 300% of direct labor cost. The beginning balance in the work in process account was P22,000 and the ending balance was P19,000. The beginning balance in the finished goods account was P53,000 and the ending balance was P58,000. The selling expense was P20,000 and the administrative expense was P35,000. P. _is the total amount of Product Cost.
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.
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Management of DLSU Company has asked for your help as an intern in preparing some key reports for April. The beginning balance in the raw materials inventory account was ₱30,000. During the month, the company made raw materials purchases amounting to ₱67,000. At the end of the month, the balance in the raw materials inventory account was ₱35,000. Direct labor cost was ₱22,000 and manufacturing overhead was 285% of direct labor cost. The beginning balance in the work in process account was ₱22,000 and the ending balance was ₱19,000. The beginning balance in the finished goods account was ₱53,000 and the ending balance was ₱58,000. The selling expense was ₱20,000 and the administrative expense was ₱35,000.
₱____________is the total amount of Work-in-Process for the period.
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