During March, Kaye Company's Department Y equivalent unit product costs, computed under the average cost method, were as follows: Materials...................................................... Php1 Conversion.................................................. 3 Transferred-in............................................ 5 Materials are introduced at the end of the process in Department Y. There were 4,000 units (40% complete as to conversion costs) in work in process at March 31. Compute for the total costs assigned to the March 31 work in process inventory.
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.
During March, Kaye Company's Department Y equivalent unit product costs, computed under the average cost method, were as follows:
Materials...................................................... Php1
Conversion.................................................. 3
Transferred-in............................................ 5
Materials are introduced at the end of the process in Department Y. There were 4,000 units (40% complete as to conversion costs) in work in process at March 31.
Compute for the total costs assigned to the March 31 work in process inventory.
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