Brisson Company Case Study

Case 19-3: Brisson Company Approach This problem takes the student through a complete cycle of transactions in a standard cost system in a simple setting. It shows how such a system works, including the development of variances, and ties cost accounting to the accounting cycle the student learned in Part 1 of the book. (Brisson’s system is the same as the one depicted in Illustration 19-2.) This seems to be a valuable exercise, especially in helping to minimize the omnipresent problems students have with production cost variance analysis in the next chapter. If not assigned for class, this makes a good exam case. (For ease in grading, I suggest you prepare forms with all needed T accounts preprinted on them.) Question 1 Materials Inventory | | Work in Process Inventory | Bal. | 50,250 | (4) | 118,810 | | Bal. | 75,600 | (9) | 267,684 | (2) | 104,980 | | 36,420 | | (4) | 116,696 | | | Bal. | 36,420 | | | | (5a,8) | 79,200 | | | | | | | | (8) | 99,000 | | 102,812 | Finished Goods Inventory | | Bal. | 102,812 | | | Bal. | 155,400 | (10b) | 232,602 | | | | | | (9) | 267,684 | | 190,482 | | | | | | Bal. | 190,482 | | | | | | | | | | | | | | | | |

Accounts Payable | | All Other Assets | (3a) | 102,300 | Bal. | 104,700 | | Bal. | 325,500 | (3a) | 102,300 | | | (2) | 103,535 | | (3b) | 192,000 | (3b) | 192,000 | | 143,435 | (6) | 37,500 | | (10a) | 375,150 | (5b) | 116,700 | | | Bal. | 143,435 | | | | (6) | 18,300 | | | | | | | | (7) | 78,750 | All Other Liabilities | | | | | 384,600 | | | Bal. | 47,250 | | Bal. | 384,600 | | | | | | | | | | | | Overhead | | Wages Payable | (5a) | 40,500 | (8) | 99,000 | | (5b) | 116,700 | Bal. | 6,150 | (6) | 55,800 | | | | |