Refer to previous problem. Question 2: How much is the cost of goods sold during the current month? * Kai Company uses a plantwide rate based on budgeted DL cost to apply its overhead. Budgeted overhead cost for the month amounted to P420,000 and expected DL cost is P300,000. During the current month, the company worked on 4 jobs: Job 68 Job 69 Job 70 Job 71 Beginning WIP Direct materials used P34,500 26,000 P23,700 13,700 18,500 P15,000 8,350 3,000 PO 11,000 2,900 Direct labor cost 10,000 During the month, Jobs 68 and 69 were completed, but only job 69 was sold. There was no beginning finished goods inventory at the start of the current month. O a. 55,900 O b. 78,260 O c. 81,800 O d. 134,160
Refer to previous problem. Question 2: How much is the cost of goods sold during the current month? * Kai Company uses a plantwide rate based on budgeted DL cost to apply its overhead. Budgeted overhead cost for the month amounted to P420,000 and expected DL cost is P300,000. During the current month, the company worked on 4 jobs: Job 68 Job 69 Job 70 Job 71 Beginning WIP Direct materials used P34,500 26,000 P23,700 13,700 18,500 P15,000 8,350 3,000 PO 11,000 2,900 Direct labor cost 10,000 During the month, Jobs 68 and 69 were completed, but only job 69 was sold. There was no beginning finished goods inventory at the start of the current month. O a. 55,900 O b. 78,260 O c. 81,800 O d. 134,160
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 15E: Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing...
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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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