Adding Company applies overr cost products based on a pre-determined overhead rate of 80% of direct labor cost. During July, Adding Company reported the following inventory balances: July 1 $37,000 $54,000 $42,000 Direct materials Work in process Finished goods During July, Adding Company incurred the following costs: Advertising ... Depreciation, factory equipment Direct materials purchased Production supervisor's salary. Indirect materials .... $ 46,000 $ 21,000 $297,000 $ 73,000 $ 35,000 $ 89,000 $306,000 $ 29,000 $285,000 $ 37,000 Depreciation, copier in sales office ... $ 22,000 $ 60,000 Sales commissions CEO's salary .... Insurance, factory building.. Direct labor .... Factory utilities .... Rent July 31 $81,000 $26,000 $69,000 ... Forty-five percent of the rent relates to the factory while fifty-five percent of the rent relates to the administrative building. Calculate Adding Company's cost of goods sold for July
Adding Company applies overr cost products based on a pre-determined overhead rate of 80% of direct labor cost. During July, Adding Company reported the following inventory balances: July 1 $37,000 $54,000 $42,000 Direct materials Work in process Finished goods During July, Adding Company incurred the following costs: Advertising ... Depreciation, factory equipment Direct materials purchased Production supervisor's salary. Indirect materials .... $ 46,000 $ 21,000 $297,000 $ 73,000 $ 35,000 $ 89,000 $306,000 $ 29,000 $285,000 $ 37,000 Depreciation, copier in sales office ... $ 22,000 $ 60,000 Sales commissions CEO's salary .... Insurance, factory building.. Direct labor .... Factory utilities .... Rent July 31 $81,000 $26,000 $69,000 ... Forty-five percent of the rent relates to the factory while fifty-five percent of the rent relates to the administrative building. Calculate Adding Company's cost of goods sold for July
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 3SEB: JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Rich Manufacturing Corporation had the following...
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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.
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