Beginning direct materials $20,900 Beginning finished goods 32,000 Beginning work in process 21,200 Selling & administrative expenses 17,000 Gross profit 42,000 Cost of goods manufactured 328,000 Factory overhead ? Direct labor ? Direct materials purchases 124,100 Ending direct materials 24,800 Ending work in process 16,500 Ending finished goods 40,000 Manufacturing costs incurred = ______________ Direct materials used = ____________________
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.
Beginning direct materials $20,900
Beginning finished goods 32,000
Beginning work in process 21,200
Selling & administrative expenses 17,000
Gross profit 42,000
Cost of goods manufactured 328,000
Factory
Direct labor ?
Direct materials purchases 124,100
Ending direct materials 24,800
Ending work in process 16,500
Ending finished goods 40,000
- Direct materials used = ____________________
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