Calculate the order quantity that would minimize the cost of item
Q: Which of the following costing systems assigns actual costs of materials to inventory? a.normal…
A: A costing system is designed by a company to monitor the costs incurred by the company.
Q: the amount of inventory that would be reported on the absorption costing balance sheet is:
A:
Q: What are the inventory accounts used in JIT costing?
A: JIT (Just-In-Time) inventory system is usually implemented in an organization to reduce the amount…
Q: Requirements: fill up the question marks and find out the cost of goods manufactured.
A: Cost of goods manufactured can be defined as the total cost being accumulated over the goods beings…
Q: Storage costs
A: All costs incurred to produce a product is included under cost of that product. Storage costs of…
Q: Which account is not used in JIT costing? a. Finished Goods Inventory b. Raw and In-Process…
A: The JIT is a management strategy that minimizes the inventory and increases efficiency. JIT is to…
Q: Purchase discounts, freight in and receiving costs A. are used when setting a cost standard for…
A: Purchase discounts, freight in, and receiving costs are considered as part of the cost of the…
Q: How does computerised accounting system could help to improvise better reporting sytem in…
A: An accounting system in which the events and the process of final transactions are in accordance to…
Q: The cost accounting system that significantly reduced inventory-carrying costs is called: JIT…
A: JIT System: A just-in-time (JIT) inventory system is a business approach that involves receiving…
Q: Choose the most appropriate answer(s): Direct manufacturing labor costs is added into manufacturing…
A: Direct labour costs are those costs of labour which is directly engaged in production of goods and…
Q: Calculate the order quantity that would minimize the cost of item Z.
A: Economic order quantity (EOQ), is the optimum amount of an item that should be ordered at any given…
Q: Compute cost of goods manufactured. using a formal schedule of cost of good manufactured then…
A: Cost of goods manufactured shows the total costs incurred on the production of goods. It includes…
Q: When products and their costs are moved from one process to the next process, these costs are…
A: Process costing is a method of costing used to ascertain the cost of a product at each stage or…
Q: Work in Process inventory shows the cost of completed goods available for sale to customers. True…
A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…
Q: Differentiate order-generating expenses from order-processing expenses.
A: The expenses are incurred to generate revenues. The company has to incur operating expenses while…
Q: Write out the formula for the total costs of carrying and ordering inventory, and then use…
A: The formula for the total costs of carrying and ordering inventory and using the formula to derive…
Q: The equivalent of finished goods inventory for a merchandising firm is referred to as a) inventory.…
A: Completed goods / Finished goods are the only type of inventory which is purchased or sold for…
Q: What are ordering costs? What are setup costs? What are carrying costs? Provide examples of each…
A: Cost is the amount incurred on buying an item of getting a job done. There are various types of cost…
Q: The First- In- First- Out method, which is mainly utilized to assign the average cost of production…
A: First in first out (FIFO) is one of the method of inventory valuation, under which inventories which…
Q: the equivalent units for materials and conversion costs. 2. Compute the unit costs for materials…
A: Answer 1) Equivalent units for material and conversion costs. Physical units % material %…
Q: Describe the concept of management by exception and explain how standard costs help managers apply…
A:
Q: Which account is not used in JIT costing? Finished Goods Inventory Raw and In-Process Inventory…
A:
Q: The equivalent of finished goods inventory for a merchandising firm is referred to as • a)…
A: Merchandising firm means a firm which only deals in sale and purchase of a commodity but do not…
Q: Inventory cost is least likely to include:A. production-related storage costs.B. costs incurred as a…
A: Transportation costs incurred to ship inventory to customers are an expense and may not be…
Q: pic is about Cost Accounting. Please check the picture for the problem. Requirement: Determine the…
A: = Sales - purchases of raw materials- opening inventories + closing inventories - direct labor -…
Q: Explain how the analysis of fixed manufacturing overhead costs differs for (a) planning and control…
A: Fixed Cost:The cost which does not fluctuate on the basis of the output level produced. It remains…
Q: Define cost accounting, what are the two basic types of product costing. Explain any one of them…
A: Cost accounting is that branch of accounting in which the cost to be incurred for the manufacturing,…
Q: Requirements: • 1. Compute the equivalent units for materials and conversion costs. • 2. Compute the…
A: Calculation of all requirement with necessary workings are as follows.
Q: How much fixed overhead cost is included in ending finished goods inventory under absorption…
A: Absorption costing considers the fixed overhead costs for production as per the units sold and not…
Q: What are some inventory ordering costs? As defined here, are thesecosts fixed or variable?
A: Inventory ordering cost can be define as the cost that is incurred by the firm during order…
Q: The purpose of costing are as follows EXCEPT: a) Value inventory b) Record costs c) Price products…
A: The purpose of costing is. 1. To Formulate cost of a product 2. To facilitate decision making 3. To…
Q: When trying to identify product and period costs, is cash, work inprocess, and raw materials…
A: Product cost:The product cost relates to the manufacturing costs such as direct material, direct…
Q: Describe and compare the cost flow assumptions used to account for inventories.
A:
Q: QUESTIONS A. Compute for the ending Finished Goods Inventory under Absorption costing B. Compute…
A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…
Q: Process Costing - Assem ding inventory production for
A: Work in progress inventory refers to the inventory which is still being in process of converting…
Q: The purpose of costing are as follows EXCEPT: Price products Make decisions record cost Formulate…
A: The purpose of costing 1. To fix the price of the product 2. For decision making 3. For…
Q: Which of the following statements is true? Direct costs are allocated to cost objects using a…
A: There are two type of costs incurred and accounted for in business. It can be direct costs or…
Q: methods. variable costing system, fixed overhead cost is included of the cost of inventory.…
A: Option a, c and d are incorrect The correct statements are a) In variable and absorption costing ,…
Q: Compute cost of goods manufactured.
A: Statement of Cost of Goods Manufactured: Cost of goods manufactured can be defined as the total…
Q: When would slicing and dicing be an appropriate OLAP tool? Give an example of inventory
A: OLAP means Online Analytical Processing. It includes decision support, modeling, information…
Q: the costs transferred to finished goods inventory are called ?
A: Cost of goods manufactured referred to the total cost incurred in order to manufacture the goods.…
Q: e category you put cost accounting, inventory management and budgeting?
A: Accounting is called the process of compiling and checking all the transactions of a company in…
Q: Distinguish between product costs and period costs asthey relate to inventory.
A:
- Calculate the order quantity that would minimize the cost of item
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- Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
- Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?Carsen Company produces handcrafted pottery that uses two inputs: materials and labor. During the past quarter, 24,000 units were produced, requiring 96,000 pounds of materials and 48,000 hours of labor. An engineering efficiency study commissioned by the local university revealed that Carsen can produce the same 24,000 units of output using either of the following two combinations of inputs: The cost of materials is 8 per pound; the cost of labor is 12 per hour. Required: 1. Compute the output-input ratio for each input of Combination F1. Does this represent a productivity improvement over the current use of inputs? What is the total dollar value of the improvement? Classify this as a technical or an allocative efficiency improvement. 2. Compute the output-input ratio for each input of Combination F2. Does this represent a productivity improvement over the current use of inputs? Now, compare these ratios to those of Combination F1. What has happened? 3. Compute the cost of producing 24,000 units of output using Combination F1. Compare this cost to the cost using Combination F2. Does moving from Combination F1 to Combination F2 represent a productivity improvement? Explain.Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30.000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: The cost driver for each cost pool and its expected activity is shown: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing?
- Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
- Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of 44 per drum. The company has been producing and selling 80,000 drums per month. In connection with your examination of Zippys financial statements for the year ended September 30, management has asked you to review some computations made by Zippys cost accountant. Your working papers disclose the following about the companys operations: Standard costs per drum of product manufactured: Materials: Costs and expenses during September: Chemicals: 645,000 gallons purchased at a cost of 1,140,000; 600,000 gallons used. Empty drums: 94,000 purchased at a cost of 94,000; 80,000 drums used. Direct labor: 81,000 hours worked at a cost of 816,480. Factory overhead: 768,000. Required: Calculate the following for September, using the formulas on pages 421422 and 424 (Round unit costs to the nearest whole cent and compute the materials variances for both Surge and for the drums.): 1. Materials quantity variance. 2. Materials purchase price variance. 3. Labor efficiency variance. 4. Labor rate variance.Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.