Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and...
90.2K
Verified Solution
Link Copied!
Question
Accounting
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 $139 per unit. Its standard cost per unit produced is $109 and its selling and administrative expenses totaled $237,000. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year: Materials price variance $ 6,900 F Materials quantity variance $ 10,600 U Labor rate variance $ 3,900 U Labor efficiency variance $ 4,800 F Fixed overhead budget variance $ 2,900 F Fixed overhead volume variance $ 12,400 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.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.