1. Blasi Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Beginning inventories: Finished goods Estimated total manufacturing overhead at the beginning of the year Estimated direct labor-hours at the beginning of the year Results of operations: Raw materials (all direct) requisitioned for use in production Direct labor cost Actual direct labor-hours Manufacturing overhead: Indirect labor cost Other manufacturing overhead costs incurred Selling and administrative: Selling and administrative salaries Other selling and administrative expenses Cost of goods manufactured Sales revenue Cost of goods sold (unadjusted) Required: a. What is the total manufacturing cost added to Work in Process during the year? b. What is the cost of goods available for sale during the year? What is the net operating income for the year? $ 33,000 $540,000 40,000 direct labor-hours 5 462,000 $ 567,000 39,000 direct labor-hours $121,000 $ 451,000 $263,000 $ 299,000 $ 1,371,000 $3,298,000 $ 1,302,000
1. Blasi Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Beginning inventories: Finished goods Estimated total manufacturing overhead at the beginning of the year Estimated direct labor-hours at the beginning of the year Results of operations: Raw materials (all direct) requisitioned for use in production Direct labor cost Actual direct labor-hours Manufacturing overhead: Indirect labor cost Other manufacturing overhead costs incurred Selling and administrative: Selling and administrative salaries Other selling and administrative expenses Cost of goods manufactured Sales revenue Cost of goods sold (unadjusted) Required: a. What is the total manufacturing cost added to Work in Process during the year? b. What is the cost of goods available for sale during the year? What is the net operating income for the year? $ 33,000 $540,000 40,000 direct labor-hours 5 462,000 $ 567,000 39,000 direct labor-hours $121,000 $ 451,000 $263,000 $ 299,000 $ 1,371,000 $3,298,000 $ 1,302,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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i need a and b and c answer.
Transcribed Image Text:1. Blasi Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of
Goods Sold at the end of the year. The company has supplied the following data for the just completed year:
Beginning inventories:
Finished goods
Estimated total manufacturing overhead at the beginning of the year
Estimated direct labor-hours at the beginning of the year
Results of operations:
Raw materials (all direct) requisitioned for use in production
Direct labor cost
Actual direct labor-hours
Manufacturing overhead:
Indirect labor cost
Other manufacturing overhead costs incurred
Selling and administrative:
Selling and administrative salaries
Other selling and administrative expenses
Cost of goods manufactured
Sales revenue
Cost of goods sold (unadjusted)
Required:
a. What is the total manufacturing cost added to Work in Process during the year?
b. What is the cost of goods available for sale during the year?
What is the net operating income for the year?
$ 33,000
$540,000
40,000 direct labor-hours
5 462,000
- $ 567,000
39,000 direct labor-hours
$ 121,000
$ 451,000
$263,000
$ 299,000
$ 1,371,000
$3,298,000
$ 1,302,000
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