Acct Chap 13 Kimmel

The correct answer is D, $700,000. The nonmanufacturing costs are the costs incurred to make the inventory are crossed out below. Notice that purchasing raw material is not the same thing as incurring a cost. You have simply traded one asset for another. You have not yet used it to make a product, or provide a service.

Only the incremental costs and benefits are relevant. In particular, only the variable manufacturing overhead and the cost of the special tool are relevant overhead costs in this situation. The other manufacturing overhead costs are fixed and are not affected by the decision.

are costs that have already been incurred and cannot be changed by any decision made

3. Briefly describe how the current production cost assignment system works. What are the consumption ratios (activity percentages) for assigning manufacturing overhead to each product at present?

If Marlene Herbert were to discontinue place mats, he would miss $270,000 that will go toward Mendel paper company fixed cost. The company currently has a plant overhead that is estimated at $420,000 for the quarter. In addition to the fixed plant overhead, the plant incurs fixed selling and administrative expenses per quarter of $118,000. This draws the company to a total fixed cost of $538,000. If Marlene Herbert were to discontinue the second highest contributor to the fixed cost, he would need to increase the volume of computer paper and lower material cost to help pull the contribution margin of the lowest product up to help support the lost of a whole product line.

Direct labor costs ended at $221k or 41.8% of sales compared with $221K and 34.8% of sales for the same period a year ago. Direct labor headcount

I am somewhat confident this topic will not be the most appealing to the masses, but to the few who work with manufacturing accounting, standard costing, work order processing, and the JD Edwards Manufacturing Accounting and Costing application, this article may be of interest.

After having discussed how this assignment was in regards to our Cost Accounting course, Mr. Beadini first stated that it was essential to note that job costing was being used within his company. He mentioned that job costing is what best matched the flow of work for his mechanic shop considering that they are a service-based company. This means that, for River Oaks L&E, their work is broken into separate jobs so that each job can be tracked separately because each job that is being done is unique. For example, Mr. Beadini stated that for each

15) Which of the following companies is most likely to use a process costing system. A) a manufacturer of breakfast cereal B) a manufacturer of large commercial aircraft C) a custom jewelry manufacturer D) a law firm Answer: A Diff: 1 Terms: process costing Objective: 2 AACSB: Reflective thinking

The Bakery produces cupcakes. It uses a process costing system. In March, its beginning inventory was 450 units, which were 100% complete for direct materials costs and 10% complete for conversion costs. The cost of beginning inventory was $655. Units started and completed during the month totaled 14,200. Ending inventory was 410 units, which were 100% complete for direct materials costs and 70% complete for conversion costs. Costs per equivalent unit for March were $1.40 for direct materials costs and $1.00 for conversion costs. Using the FIFO costing method, compute the cost of goods transferred to the Finished Goods Inventory account, the cost remaining in the Work in Process

Utilizing Will’s old costing method, the only difference between the costs (per gallon) of Polynesian Fantasy and Vanilla ice cream product is the 20 cent difference in the cost of direct material (DH). The overhead rate (OH) is 200 percent of direct labor (DL) dollars. Seeing that the direct labor dollars are $300,000, the next step in calculating the overhead rate is multiplying 300,000 by 2.00, or 200%, which results in $600,000. To ensure the arithmetic is correct, divide $600,000 by the $300,000 which equates to 2.00, or 200%, indicating the arithmetic is in fact correct.

‘Provision for write-down’ item is deducted and net value is calculated after this deduction for every item in the inventory. While determining the purchase or production cost, weighted average cost method has been used. For the raw materials, work in progress, value is determined by the estimated net realisable value which is the difference between finished products and completion costs. For the finished products, value is determined by the estimated net realisable value which refers to difference between price lists and selling and distribution costs.

Manufacturing overhead (also known as factory overhead, factory burden, production overhead) involves a company 's factory operation. It includes the costs incurred in the factory other than the costs of direct materials and direct labor. This is the reason that manufacturing overhead is often classified as an indirect cost. The general professional accounted has accepted accounting principles require that cost of direct material cost, direct labor, and manufacturing overhead be considered as the costs of products for valuing inventory and for determining the cost of creating these shoes. An example, of manufacturing overhead include the depreciation or the rent on the factory building, depreciation on the factory equipment, supervisors in the factory, the factory quality control department, factory maintenance employees, electricity and gas for the factory, indirect factory supplies.

D. Overhead costs - Direct labour, direct materials and direct costs in addition to the income statement and all of the overhead costs overhead costs- cost. Expenses and accounting fees, advertising, insurance, interest, legal fees, labour, rent, repairs, supplies, taxes, telephone bills, travel expenses, and the application of the burden.

Traditional costing system was introduced decades ago to meet the demand of management accounting in the manufacturing firms. This was vital to facilitate the allocation of overhead costs