Costs transferred in from Department A to Department BO will not be complete with respect to work done in Department Awill always be 100% complete with respect to Department AO must be at least 50% completeare no different than the materials and conversion cost categories

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Description: Costs transferred in from Department A to Department BO will not be complete with respect to work done in Department Awill always be 100% complete with respect to Department AO must be at least 50% completeare no different than the materials and con

A process costing system is a method to determine the production cost of the product at every…

Business

Accounting

Costs transferred in from Department A to Department B O will not be complete with respect to work done in Department A O will always be 100% complete with respect to Department A O must be at least 50% complete O are no different than the materials and conversion cost categories

Costs transferred in from Department A to Department B O will not be complete with respect to work done in Department A O will always be 100% complete with respect to Department A O must be at least 50% complete O are no different than the materials and conversion cost categories

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter5: Process Cost Accounting—general Procedures

Section: Chapter Questions

Problem 15Q: In determining the costs transferred to a third department from a second department, are the costs...

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Choose the most appropriate answer(s): Conversion cost is $20,000 and manufacturing overhead cost is $7,000, then direct manufacturing labor cost will be: $27,000 $13,000 $130,000 $29,500 Terms used in manufacturing cost systems are: manufacturing costs prime costs conversion costs both B and C
Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating support service costs by switching to the direct method. Required: 1. Allocate the costs of the support departments to the producing departments using the direct method. (Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar.) 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)
Refer to the data in Exercise 7.18. When the capacity of the HR Department was originally established, the normal usage expected for each department was 20,000 direct labor hours. This usage is also the amount of activity planned for the two departments in Year 1 and Year 2. Required: 1. Allocate the costs of the HR Department using the direct method and assuming that the purpose is product costing. 2. Allocate the costs of the HR Department using the direct method and assuming that the purpose is to evaluate performance.
In determining the costs transferred to a third department from a second department, are the costs from a first department considered? Are they considered in the computation of the ending work in process in the second department?
Refer to Cornerstone Exercise 7.3. Now assume that Valron Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. 2. Using the sequential method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. (Round all allocated costs to the nearest dollar.) 3. What if the allocation ratios in Requirement 1 were rounded to six significant digits rather than four? How would that affect any rounding error in the allocation of costs?
Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Refer to the data in Exercise 7.20. The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the overhead costs to the producing departments using the sequential method. (Take allocation ratios out to four significant digits. Round allocated costs to the nearest dollar.) 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.)
Discuss the major differences between marginal costing and absorption techniques. A firm has two processes 1 and 2. Material for 12000 items was put into processl. There were no opening stocks and no process losses and there were transfers of 9000items to process 2. The unfinished items were complete as to material and 50% complete as to labour and overhead. The costs of process 1 were direct material $36000, direct labour $32000 and overheads S8000. Process 2 completed 7600 items and there were 600 scrapped which was considered normal. The balance was unfinished and deemed to be 25% complete in labour and overheads. The costs for process 2 were; labour $28500 and overheads S14000. Prepare process accounts for each account
Calculate the per unit cost of an intensive visit using the conventional approach. Calculate the per unit cost of an intensive visit using the ABC approach. Exhibit 12-13Data for cost allocation in Problem 13 Basic data and calculation of unit costs using a conventional approach Total Cost by Visit Type Basic Data A B C D Initial Regular Intensive Total (Given) (Given) (Given) (A + B + C) 1 Number of visits 5,000 10,000 5,000 20,000 2 Direct materials (etc.) $21,000 $14,000 $35,000 $70,000 3 Direct labor $80,000 $80,000 $240,000 $400,000 4 Estimated overhead (total is a given) $150,000 5 Cost / visit: conventional method Additional basic data 1)…
Situation: consumption of material in production 100, wages in production 200, wages of administrative staff 50, office material consumption 10, wages of sales people 20. We have this information the production department and sales department: 80 % of production was finished. 90% of finished products were sold for a selling price in total 3000 euro. Task: Write the solutions (with calculations how you get the numbers) to these questions Calculate the total production expenses, administrative expenses and distribution expenses Calculate the product costing (valuation of own production) for the finished, unfinished and sold production Calculate the total expenses by nature (name of the expense and amount, including changes in own inventory with + or -) Calculate the profit by nature (revenues minus total expenses by nature Calculate the profit by function (write down the steps, like name and amount)
he total costs to process the beginning 7,000 units in progress was £21,000. 38,000 units were started and completed. There were no ending units in progress. Costs added during the period were: materials, £78,000, and labour and overhead, £36,000. The change in the per unit cost of the units started and completed and the beginning units completed is? a. £0.5 decrease b. £2.7 increase c. No change d. £10 increase
Sequential (Step) Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments HumanResources GeneralFactory Fabricating Assembly Direct costs $165,000 $380,000 $114,200 $90,000 Normal activity: Number of employees — 40 70 150 Square footage 1,800 — 5,500 13,200 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded…