Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 $ 7,100F Materials quantity variance $ 10,800 U Labor rate variance $ 4,100 U Labor efficiency variance $ 5,000 F Fixed overhead budget variance $ 3,100 F Fixed overhead volume variance $ 12,600 F Required: 1. When Forsyth closes its standard cost varlances, the cost of goods sold will increase (decrease) by how much? 2. Prepare an income statement for the year Complete this question by entering your answers in the tabs below. Required 1 Required 2 When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much? The cost of goods sold will by Fixed overhead budget variance $ 3,100 F Fixed overhead volume variance $ 12, 600 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year. Forsyth Company Income Statement For the Year Total variance adjustments

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Level Audit Q And A 2014

Authors: ACA Simplified

1st Edition

1500852538, 978-1500852535

More Books

Students also viewed these Accounting questions

Question

Find the derivative of y= cos cos (x + 2x)

Answered: 1 week ago