In August, Designs sold 520000 of merchandise; all sales were in cash. The cost of sales for august was 380000. Based on past experience, uses an estimated return rate of 2% of sales. Record the journal entries for the monthly sales, cost of sales, estimated returns, and cost of estimated returns for .
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.
In August, Designs sold 520000 of merchandise; all sales were in cash. The cost of sales for august was 380000. Based on past experience, uses an estimated return rate of 2% of sales. Record the
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