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
$51,000. It sells one product for $159 per unit and it generated
total sales during the period of $545,370 while incurring selling
and administrative expenses of $55,900. Swain Company does not have
any variable manufacturing overhead costs and its standard cost
card for its only product is as follows: (1) Standard Quantity or
Hours (2) Standard Price or Rate Standard Cost (1) x (2) Direct
materials 6.0 pounds $ 8 per pound $ 48 Direct labor 2.0 hours $ 12
per hour 24 Fixed manufacturing overhead 3.0 hours $ 20 per hour 60
Total standard cost per unit $ 132 During the period, Swain
recorded the following variances: Materials price variance $ 3,250
U Materials quantity variance $ 8,700 F Labor rate variance $ 3,750
U Labor efficiency variance $ 6,450 U Fixed overhead budget
variance $ 1,150 U Fixed overhead volume variance $ 5,350 F
Required: 1. When Swain closes its standard cost variances, the
cost of goods sold will increase (decrease) by how much? 2. Prepare
an income statement for the year. 3. What is Swain’s ending balance
in Retained Earnings?
Swain Company manufactures one product, it does not maintain any beginning or ending inventories, and its...
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 uses a standard cost system. The company’s beginning balance in Retained Earnings is $53,000. It sells one product for $161 per unit and it generated total sales during the period of $557,060 while incurring selling and administrative expenses of $55,700. 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 uses a standard cost system. The company's beginning balance in Retained Earnings is $65.000. It sells one product for $170 per unit and it generated total sales during the period of $603.500 while incurring selling and administrative expenses of $54,500. Swain Company does not have any variable manufacturing overhead costs and its standard cost card for its only product is as follows: (1) Standard...
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 $141 per unit. Its standard cost per unit produced is $111 and its selling and administrative expenses totaled $238,000. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year: Materials price variance Materials quantity variance Labor rate...
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 $150 per unit. Its standard cost per unit produced is $120 and its selling and administrative expenses totaled $242,500. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year: Materials price variance $ 8,000 F Materials quantity...
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 $153 per unit. Its standard cost per unit produced is $123 and its selling and administrative expenses totaled $244,000. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year: Materials price variance Materials quantity variance Labor rate...
Arena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. 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 1.2 pounds $ 5.50 per...
hework 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 $146 per unit. Its standard cost per unit produced is $116 and its selling and administrative expenses totaled $240.500. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year Materials price variance Materials quantity variance Labor...
Ester Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at 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 1.9 gallons $ 6.50 per gallon $ 12.35 Direct labor 0.80 hours $ 18.00 per hour...
Bowen Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. Its predetermined overhead rate includes $1,000,000 of fixed overhead in the numerator and 50,000 direct labor-hours in the denominator. The company purchased (with cash) and used 46,000 yards of raw materials at a cost of $11.20 per yard. Its direct laborers worked 20,700 hours and were paid a total of $291,400. The company started and completed 9,500 units of...