The company has the following financial information: Manufacturing overhead- P30,101,800 Increase in raw materials- P2,430,000 Decrease in work in process- P590,000 Increase in finished goods- P1,320,400 Manufacturing overhead
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.
The company has the following financial information:
Manufacturing
Increase in raw materials- P2,430,000
Decrease in work in process- P590,000
Increase in finished goods- P1,320,400
Manufacturing overhead amounts to 50% of direct labor, and the direct labor and manufacturing overhead combined equal 50% of the total cost of manufacturing.
How much is the cost of goods sold?
Choices:
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