Following balances as of the year ended December 31, 2019 of Yelen Trading co. Direct Materials Inventory Finished Goods Inventory 15,000 Debit 49,500 Debit 34,500 Debit 74,500 Debit WIP Inventory Cost of Goods Sold Cost of direct materials purchased Cost of direct materials requisitioned Cost of goods completed Factory overhead applied (120% of direct labour) 48,000 Underapplied factory overhead 41,000 47,000 102,000 4,000 a. Find beginning direct materials inventory b. Find beginning WIP inventory
Following balances as of the year ended December 31, 2019 of Yelen Trading co. Direct Materials Inventory Finished Goods Inventory 15,000 Debit 49,500 Debit 34,500 Debit 74,500 Debit WIP Inventory Cost of Goods Sold Cost of direct materials purchased Cost of direct materials requisitioned Cost of goods completed Factory overhead applied (120% of direct labour) 48,000 Underapplied factory overhead 41,000 47,000 102,000 4,000 a. Find beginning direct materials inventory b. Find beginning WIP inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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