Question
In: Accounting
Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its...
Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $144 per unit. Its standard cost per unit produced is $114 and its selling and administrative expenses totaled $239,500. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
| Materials price variance | $ | 7,400 | F |
| Materials quantity variance | $ | 11,100 | U |
| Labor rate variance | $ | 4,400 | U |
| Labor efficiency variance | $ | 5,300 | F |
| Fixed overhead budget variance | $ | 3,400 | F |
| Fixed overhead volume variance | $ | 12,900 | F |
Required:
1. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much?
2. Prepare an income statement for the year.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Swain Company manufactures one product, it does not maintain any
beginning or ending inventories, and its uses a standard cost
system. The company’s beginning balance in Retained Earnings is
$59,000. It sells one product for $176 per unit and it generated
total sales during the period of $635,360 while incurring selling
and administrative expenses of $55,100. Swain Company does not have
any variable manufacturing overhead costs and its standard cost
card for its only product is as follows:
(1)
Standard...
Swain Company manufactures one product, it does not maintain any beginning or ending inventories, and its...
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beginning or ending inventories, and its uses a standard cost
system. The company’s beginning balance in Retained Earnings is
$52,000. It sells one product for $160 per unit and it generated
total sales during the period of $552,000 while incurring selling
and administrative expenses of $55,800. Swain Company does not have
any variable manufacturing overhead costs and its standard cost
card for its only product is as follows:
(1)
Standard...
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the denominator. The company purchased (with cash) and used 30,000
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fixed overhead in the numerator and 50,000 direct labor-hours in
the denominator. The company purchased (with cash) and used 35,000
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any beginning or ending Work in Process inventories. The company
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their standard costs. There is no variable manufacturing overhead.
The standard cost card for the company’s only product is as
follows:
Inputs
Standard Quantity
or Hours
Standard Price or Rate
Standard Cost
Direct materials
3.3
pounds
$
7.50
per pound
$
24.75
Direct labor
0.80
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$
20.50
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The standard cost card for the company’s only product is as
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their standard costs and any variances are closed directly to Cost
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standard cost card for the company’s only product is as
follows:
Inputs
Standard Quantity
or Hours
Standard Price or
Rate
Standard Cost
Direct materials
1.2
kilos
$
3.00
per...
chapter 9 p 4 q Swain Company manufactures one product, it does not maintain any beginning...
chapter 9 p 4 q
Swain Company
manufactures one product, it does not maintain any beginning or
ending inventories, and its uses a standard cost system. The
company’s beginning balance in Retained Earnings is $56,000. It
sells one product for $164 per unit and it generated total sales
during the period of $572,360 while incurring selling and
administrative expenses of $55,400. Swain Company does not have any
variable manufacturing overhead costs and its standard cost card
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Please show work 6. Stone Company has no beginning and ending inventories, and reports the following...
Please show work
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Direct labor $125,000
Fixed indirect manufacturing $100,000
Fixed selling and administrative $150,000
Variable indirect manufacturing $50,000
Variable selling and administrative $110,000
Selling price(per unit) $100
Units produced and sold 17,500
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C) $650,000...
1. When beginning and ending inventories are equal in terms of the percentage of completion for...
1.
When beginning and ending inventories are equal in terms of the
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department
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result in the same dollar amount of costs being transferred to the
next department for direct...
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