Kurama Company incurred P2,350,000 of overhead costs during 2019. However, only P1,950,000 was applied to production at year end to the following accounts: Work in Process P200,000 500,000 Finished Goods Cost of Sales 700,000 Determine the adjusted cost of goods sold assuming the variance is material P500,000 P900,000 P250,000 P 1,350,000
Kurama Company incurred P2,350,000 of overhead costs during 2019. However, only P1,950,000 was applied to production at year end to the following accounts: Work in Process P200,000 500,000 Finished Goods Cost of Sales 700,000 Determine the adjusted cost of goods sold assuming the variance is material P500,000 P900,000 P250,000 P 1,350,000
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...
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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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