The Accounting Review Vol. 21 No. 3 1946
PROFESSIONAL EXAMINATIONS.
Abstract
This article presents accounting problems which were prepared by the Board of Examiners of the American Institute of Accountants and were presented as the first half of the Certified Public Accountants examination in accounting practice on May 15, 1946. It gives an information and asks to prepare an income statement showing therein appropriate manufacturing cost variances of Bunson Co., for January, 1946, supported by journal entries of transactions for the month. The Bunson Co. makes unit M. The manufacturing of unit M is based on three successive and continuous operations in which the manufacturing cost of such unit is developed. The Eunson Co., operates a cost accounting system based on standard costs which are incorporated in the manufacturing cost accounts. The differences between standard costs and actual costs are reflected in appropriate variance accounts, namely, material price, material usage, direct labor rate, direct labor time, and over-all manufacturing overhead. The material price variance is assumed to be realized at the time of purchase, irrespective of time of usage.
- DOI
- 10.2308/tar-7051139
- Volume
- 21
- Issue
- 3
- Pages
- 345-351
- Language
- en
- Sources
- openalex crossref