Here, in the given problem we are supposed to find out the effect of standard cost variances on cost of goods sold for Swain Company. Further, an income statement is required and also reporting closing balance of the Retained Earnings is required. Introduction: Standard costing is a cost accounting technique used by various organizations to identify the variances between the actual cost incurred and the cost that should have been incurred. Here, the organization sets predetermined estimates and then compare them with the actual amounts to determine the variances.

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Chapter 10.B, Problem 2E

To determine

Here, in the given problem we are supposed to find out the effect of standard cost variances on cost of goods sold for Swain Company. Further, an income statement is required and also reporting closing balance of the Retained Earnings is required.

Introduction:

Standard costing is a cost accounting technique used by various organizations to identify the variances between the actual cost incurred and the cost that should have been incurred. Here, the organization sets predetermined estimates and then compare them with the actual amounts to determine the variances.

To determine

Now, we are required to prepare the income statement for Swain for the year.

To determine

Now, we are required to ascertain Swain’s ending balance of retained earnings for the year.

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Calm Ltd has the following data relating tò two investment projects, only one of which mayb e s e l e c t e d :The cost of capital is 10 per cent, and depreciation is calculated using straight line method.a . Calculate for each of the project:i. Average annual accounting rate of return on average capital investedi i . Net Present Valuei l l . I n t e r n a l R a t e o f Returnb. Discuss the relative merits of the methods of evaluation mentioned above in (a).Q.4a . In the context of process costing, discuss the following concepts briefly, i . Equivalent unitsNormal lossill. Abnormal lossi v. Joint productsV . By productsb . Discuss the different types of standard costing and objectives of standard costing.