Beckett Industries has the following beginning and ending inventories for the month of April. April 1April 30Direct materials $67,000 $62,000 Work-in-process 145,000 171,000 Finished goods 85,000 78,000 Production data for the month of April is: Direct labor$200,000 Actual overhead 132,000 Direct materials purchased 163,000 Transportation in 4,000 Purchase Returns and Allowances 2,000 Beckett uses one overhead control account and charges overhead to production at 70% of direct labor cost. The company does not formally recognize over- or underapplied overhead until year-end. What is Beckett's cost of goods transferred to finished goods inventory for April?
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.
Beckett Industries has the following beginning and ending inventories for the month of April.
April 1April 30Direct materials $67,000 $62,000 Work-in-process 145,000 171,000 Finished goods 85,000 78,000
Production data for the month of April is:
Direct labor$200,000 Actual
Beckett uses one overhead control account and charges overhead to production at 70% of direct labor cost. The company does not formally recognize over- or underapplied overhead until year-end.
What is Beckett's cost of goods transferred to finished goods inventory for April?
Multiple Choice
- A) $469,000.
- B) $477,000.
- C) $495,000.
- D) $484,000.
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