What is the total manufacturing cost added to Work in Process for this year?
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.
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows:
| Raw materials | $ 84,500 |
|---|---|
| Work in process | $ 35,000 |
| Finished goods | $ 44,100 |
The company applies
- Raw materials were purchased on account, $614,000.
- Raw materials used in production, $567,600. All of of the raw materials were used as direct materials.
- The following costs were accrued for employee services: direct labor, $450,000; indirect labor, $150,000; selling and administrative salaries, $290,000.
- Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $375,000.
- Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $350,000.
- Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.
- Jobs costing $1,461,900 to manufacture according to their
job cost sheets were completed during the year. - Jobs were sold on account to customers during the year for a total of $3,172,500. The jobs cost $1,471,900 to manufacture according to their job cost sheets.
Foundational 3-5 (Algo)
5. What is the total
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