tate College Technology Store (SCTS) is a retail computer store in the university center of a large midwestern university. SCTS engaged in the following transactions during November of the current year: Nov. 1 Purchased 20 Nopxe laptop computers on account from Led Inc. The laptop computers cost $800 each, for a total of $16,000. Payment is due in 30 days. Nov. 6 Sold four Nopxe laptop computers on account to the Department of Microbiology at State College at a retail sales price of $1,200 each, for a total of $4,800. Payment is due in 30 days. Dec. 1 Paid the $16,000 account payable to Led Inc. Dec. 6 Collected the $4,800 account receivable from State College’s Department of Microbiology. Prepare journal entry
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.
State College Technology Store (SCTS) is a retail computer store in the university center of a large midwestern
university. SCTS engaged in the following transactions during November of the current year:
Nov. 1 Purchased 20 Nopxe laptop computers on account from Led Inc. The laptop computers
cost $800 each, for a total of $16,000. Payment is due in 30 days.
Nov. 6 Sold four Nopxe laptop computers on account to the Department of Microbiology at
State College at a retail sales price of $1,200 each, for a total of $4,800. Payment is
due in 30 days.
Dec. 1 Paid the $16,000 account payable to Led Inc.
Dec. 6 Collected the $4,800
Prepare
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
