Standard Cost System-Disposition of Variances

question 57

Essay

Standard cost system-disposition of variances
The cost of goods sold at standard cost for Field Company for 2015 amounted to $425,000 and was 60% of net sales.As of the end of 2015,the total of balances remaining in cost variance accounts was a net unfavorable cost variance of $8,000,which is not considered material.
(a)What is the amount shown in Field 's 2015 income statement for cost of goods sold? $_______________
(b)What is the amount reported in Field 's 2015 income statement for gross profit on sales? $_______________
(If required,round your answer to nearest whole dollar value.)

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Definitions:

Behavioral Finance

A field of finance that proposes psychology-based theories to explain stock market anomalies.

Reasoning Errors

Mistakes in logical thinking or incorrect conclusions drawn from evidence or assumptions.

Financial Decisions

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Overconfidence

A cognitive bias where an individual's subjective confidence in their judgments is reliably greater than their objective accuracy.