The following accounts are from last year’s books at Sharp Manufacturing: Raw Materials Bal 0 (b) 157,800 (a) 173,500 15,700 Work In Process Bal 0 (f) 525,200 (b) 133,900 (c) 171,800 (e) 219,500 0 Finished Goods Bal 0 (g) 479,000 (f) 525,200 46,200 Manufacturing Overhead (b) 23,900 (e) 219,500 (c) 27,900 (d) 159,800 7,900 Cost of Goods Sold (g) 479,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year? Multiple Choice A. $258,650 B. $471,100 C. $525,200 D. $479,000
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.
The following accounts are from last year’s books at Sharp Manufacturing:
| Raw Materials | |||
| Bal | 0 | (b) | 157,800 |
| (a) | 173,500 | ||
| 15,700 |
| Work In Process | |||
| Bal | 0 | (f) | 525,200 |
| (b) | 133,900 | ||
| (c) | 171,800 | ||
| (e) | 219,500 | ||
| 0 |
| Finished Goods | |||
| Bal | 0 | (g) | 479,000 |
| (f) | 525,200 | ||
| 46,200 |
| Manufacturing |
|||
| (b) | 23,900 | (e) | 219,500 |
| (c) | 27,900 | ||
| (d) | 159,800 | ||
| 7,900 |
| Cost of Goods Sold | |||
| (g) | 479,000 | ||
Sharp uses
Multiple Choice
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
