Crane,Increported the Following Data Regarding Costs and Inventories for the Current

question 220

Essay

Crane,Inc.reported the following data regarding costs and inventories for the current year: beginning work in process inventory,$4,000; beginning finished goods inventory,$2,000; cost of goods manufactured,$11,500; operating expenses,$3,000; ending finished goods inventory,$1,000; ending work in process inventory,$1,500.Cost of goods sold for Crane,Inc.equals ________.

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Definitions:

Raw Materials Inventory

The stock of basic materials and components that are to be used in the production or manufacturing of goods.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or budgeted) cost, often analyzed in cost accounting.

Labor Efficiency Variance

A metric that assesses the difference in actual versus budgeted labor hours used, valued at the standard wage rate, to gauge workforce productivity.

Work in Process Account

An account that tracks the costs associated with partially completed goods in the manufacturing process.