Bascom Inc

question 74

Essay

Bascom Inc.manufactures one product.It does not maintain any beginning or ending 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.Its standard cost per unit produced is $25.75.During the year, the company produced and sold 36,000 units at a price of $31.80 per unit and its selling and administrative expenses totaled $169,000.The company does not have any variable manufacturing overhead costs.It recorded the following variances during the year:
Required:
1.When the company closes its standard cost variances, the cost of goods sold will increase (decrease)by how much?
2.Prepare an income statement for the year.

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Definitions:

Energy Consumption

The total amount of energy used by individuals, organizations, or countries, often measured in joules, kilowatt-hours, etc.

GDP

Gross Domestic Product, which measures the market value of all final goods and services produced within a country in a given period.

Clean Economy

An economy that produces goods and services with environmental benefit.

Chief Sustainability Officer

A corporate executive responsible for integrating and managing an organization’s sustainable practices, ensuring environmental, social, and economic viability.