The related data of Cyclops Company: Purchases of raw materials P120,000 Direct labor cost 150,000 Selling costs (total) 40,000 Administrative costs (total) 30,000 Manufacturing overhead costs (total) 105,000 Raw materials inventory, beginning 15,200 Work in process inventory, beginning 8,900 Finished goods inventory, beginning 87,500 Raw materials inventory, ending 5,600 Work in process inventory, ending 12,800 Finished goods inventory, ending 62,900 Manufacturing overhead is 80% of the direct labor cost. How much is 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.
The related data of Cyclops Company:
Purchases of raw materials P120,000
Direct labor cost 150,000
Selling costs (total) 40,000
Administrative costs (total) 30,000
Raw materials inventory, beginning 15,200
Work in process inventory, beginning 8,900
Finished goods inventory, beginning 87,500
Raw materials inventory, ending 5,600
Work in process inventory, ending 12,800
Finished goods inventory, ending 62,900
Manufacturing overhead is 80% of the direct labor cost.
How much is the cost of goods manufactured?
Step by step
Solved in 2 steps with 1 images
