Weighted Average Method, Unit Cost, Valuing Inventories Applegate Enterprises produces premier raspberry jam. Output is measured in pints. Applegate uses the weighted average method. During January, Applegate had the following production data: Units in process, January 1, 60% complete 184,000 pints Units completed and transferred out 700,000 pints Units in process, January 31, 40% complete 225,000 pints Costs: Work in process, January 1 $202,400 Costs added during January 666,600
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.
Weighted Average Method, Unit Cost, Valuing Inventories
Applegate Enterprises produces premier raspberry jam. Output is measured in pints. Applegate uses the weighted average method. During January, Applegate had the following production data:
| Units in process, January 1, 60% complete | 184,000 pints |
| Units completed and transferred out | 700,000 pints |
| Units in process, January 31, 40% complete | 225,000 pints |
| Costs: | |
| Work in process, January 1 | $202,400 |
| Costs added during January | 666,600 |
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