costs were incurred durin erial (all direct) ead costs:
Q: Distinguish between costs included in inventories and costs recognized as expenses in theperiod in…
A: Product cost is the cost incurred for manufacturing a product i.e.; it is the total amount of direct…
Q: Give detail definition on operational cost and explain in detail how the operational cost is…
A: Introduction:- The following definition of operational cost as follows under:- Operating costs are…
Q: Indirect costs are known as: (a) Avoidable costs (b) Overheads (c) Incremental costs (d)…
A: 1) Indirect costs means costs which are not directly related to cost of production. Indirect costs…
Q: The one cost that would be dassified as part of both prirne cost and conversioncr wndctis Oa direct…
A: Prime cost = Direct material + Direct labor + Direct expenses Conversion cost = Direct labor +…
Q: costs and are allocated based on
A: Fixed costs allocated = 25% * Total costs 25% * $48000 = $12000
Q: Which of statements about the contribution income statement is correct? Group of answer choices
A: A contribution income statement is defined as the statement in which all the variable costs and all…
Q: Standard cost is a Select one: O a. Actual cost b. Historical cost c. Predetermined cost O d. direct…
A: Let's start with understanding of meaning of standard cost Standard cost:- Standard cost is the…
Q: Distinguish between discretionary fixed costs and committed fixed costs.
A: Discretionary fixed costs and committed fixed costs: Both costs are considered as fixed costs but…
Q: st nas offered to provide th ead cost above couldb
A: financial advantage: $4 per unit on average Explanation: total production cost $22 Direct…
Q: A direct costs is a cost that is:
A: Solution:- B) Option "B" is the correct answer Reason:- A direct cost is the that is identifiable as…
Q: Explain service method of allocating prior service cost.
A: Service cost refers to the part of pension expenses deducted every year. Service cost is amortized…
Q: Uncontrollable costs are the costs which be influenced by the action of a specified member of an…
A: In the process of manufacturing goods certain costs are incurred. The type of costs involved in the…
Q: tracing and allocating cost to cost object
A: Cost Allocation is the process of identifying various cost pools and allocating them to cost object…
Q: Overhead expenses can be classified according to O a. Functions O b. Elements Oc. All of the above O…
A: Overhead expenses are all indirect costs of manufacturing the product or selling the product. These…
Q: .For external reporting purposes, the amount of inventoriable costs must be: our answer . For…
A: Inventoriable Cost: Inventoriable costs are those costs which are directly associated with the…
Q: bject:cost account
A: Cost of Production report states the cost per Equivalent unit produced and transferred and cost of…
Q: The general term used to identify both .2 the tracing and the allocation of :accumulated costs to a…
A: Cost assignment to various departments requires cost tracing and cost allocation.
Q: a) Why are neutral expenes eliminated and imputed cost added to derivee cost from expenses
A: Deriving the cost from expenses is necessary to ascertain the exact cost incurred and to…
Q: Prior (Past) service cost is expensed immediately using which of the following? a. U.S. GAAP. b.…
A: Prior or past service cost refers to the changes in the PV of defined benefit obligations due to the…
Q: Explain the major reasons for allocating costs.
A: The entity allocates its cost by using a different measure. The cost that is allocated is common and…
Q: Which does not belong to a category? * a. Labor b. Materials c. Overhead d. Purchases
A: Answer: Purchase
Q: A transfer of a particular cost from one cost to another
A: Yes, We can transfer of a particular cost from one cost to another.
Q: Classify the following fixed costs as normally being either committed or discretionary:c. Research.
A: Cost: It is the economic value of resources incurred by a firm to manufacture a product or render…
Q: Costs that are directly associated with the earning of revenue are recognized as expense in the same…
A: The accounting is based on various principles and regulations.
Q: The joint costs allocated to product Y were
A: Joint costs are those costs which are incurred for producing two or more than two products at the…
Q: Responsibility Centers include the following except: A) Profit B) Revenue C) Process D) Cost
A: These are the type of responsibility center i.e. expense center, profit center, investment and…
Q: Describe the accounting and amortization of prior service costs.
A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…
Q: The three major categories of agency costs are
A: Agency cost is considered as an internal cost, that arises from the actions of an agent who works on…
Q: Explain the term transferred in costs.
A: Concept of transferred in costs are used in process costing system. Operations of a company…
Q: With relevant examples, explain the following; i. Primary appointment and secondary apportionment…
A: Part i: When overheads are allocated to all divisions in the company (both manufacturing and service…
Q: a. What is the amount of indirect material cost incurred this period? b. Specify whether MOH for the…
A: Raw material means the material purchased and still not enter in to the production lines. Work in…
Q: Distinguish between costs that are capitalized and costs that are expensed in the period inwhich…
A: A business cost includes all costs such as capitalized cost, the variable cost, direct or indirect…
Q: Period cost is O A. inventoriable cost B. allocated between sold and unsold O C. fully expense in…
A: Solution: Period cost is "Fully expensed in the period incurred". This is because period cost are…
Q: REQUIRED: a. Joint cost allocated to by-product X amounted to? b. Joint
A: the fixed cost does not change along with the production. They have to incur irrespective of the…
Q: Costs incurred to earn revenue are referred to as _____
A: Expenditure is the outflow cash or incurred by the business to support the generation of revenue.…
Q: Compute for the joint cost allocated to Reta.
A: Joint costs are those costs that are incurred for two or more than two products simultaneously.…
Q: Classify the following fixed costs as normally being either committed or discretionary:b.…
A: Given: To analyse if advertising follows either committed or discretionary fixed costs.
Q: “Transferred-in costs are those costs incurred in the preceding accounting period.”Do you agree?…
A:
Q: A cost object indicates how costs are related or identified. O FALSE O TRUE
A: Given, A Cost object is a term in cost accounting which is used to assign the cost.
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- The books of Petry Products Co. revealed that the following general journal entry had been made at the end of the current accounting period: The total direct materials cost for the period was $40,000. The total direct labor cost, at an average rate of $10 per hour for direct labor, was one and one-half times the direct materials cost. Factory overhead was applied on the basis of $4 per direct labor hour. What was the total actual factory overhead incurred for the period? (Hint: First solve for direct labor cost and then for direct labor hours.)Entries for costs in a job order cost system Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: A. Materials purchased on account, 770,000. B. Materials requisitioned, 680,000, of which 75,800 was for general factory use. C. Factory labor used, 756,000, of which 182,000 was indirect. D. Other costs incurred on account for factory overhead, 245,000; selling expenses, 171,500; and administrative expenses, 110,600. E. Prepaid expenses expired for factory overhead were 24,500; for selling expenses, 28,420; and for administrative expenses, 16,660. F. Depreciation of factory equipment was 49,500; of office equipment, 61,800; and of office building, 14,900. G. Factory overhead costs applied to jobs, 568,500. H. Jobs completed, 1,500,000. I. Cost of goods sold, 1,375,000. Instruction Journalize the entries to record the summarized operations.During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
- Inez has the following information relating to Job AA5. Direct material cost was $200,000, direct labor was $36,550, and overhead applied on the basis of direct labor hours was $73,100. What was the predetermined overhead rate using the labor rate of $17 per hour?Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: The accountant computed the inventory cost of this order to be 4.30 per unit. The annual budgeted overhead in dollars was: a. 577,500. b. 600,000. c. 645,000. d. 660,000.The following data summarize the operations during the year. Prepare a journal entry for each transaction. A. Purchase of raw materials on account: $1,500 B. Raw materials used by Job 1: $400 C. Raw materials used as indirect materials: $50 D. Direct labor for Job 1: $200 E. Indirect labor Incurred for Job 1: $30 F. Factory utilities Incurred on account: $500 G. Adjusting entry for factory depreciation: $200 H. Manufacturing overhead applied as percent of direct labor: 100% I. Job 1 is transferred to finished goods J. Job 1 is sold: $1,000 K. Manufacturing overhead is under applied: $100
- During the month, Job Arch2 used specialized machinery for 350 hours and incurred $700 in utilities on account. $400 in factory depreciation expense, and $200 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.The following data summarize the operations during the year. Prepare a journal entry for each transaction. Purchase of raw materials on account: $3000 Raw materials used by Job 1: $500 Raw materials used as indirect materials: $100 Direct labor for Job 1: $300 Indirect labor incurred: $50 Factory utilities incurred on account: $700 Adjusting entry for factory depreciation: $250 Manufacturing overhead applied as percent of direct labor: 200% Job 1 is transferred to finished goods Job 1 is sold: $3,000 Manufacturing overhead is over applied: $100JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Eto Manufacturing had the following transactions during the month: (a) Purchased raw materials on account, 70,000. (b) Issued direct materials to Job No. 300, 25,000. (c) Issued indirect materials to production, 10,000. (d) Paid biweekly payroll and charged direct labor to Job No. 300, 8,000. (e) Paid biweekly payroll and charged indirect labor to production, 3,000. (f) Issued direct materials to Job No. 301, 20,000. (g) Issued indirect materials to production, 4,000. (h) Paid miscellaneous factory overhead charges, 6,000. (i) Paid biweekly payroll and charged direct labor to Job No. 301, 10,000. (j) Paid biweekly payroll and charged indirect labor to production, 2,000. REQUIRED Prepare general journal entries for transactions (a) through (j).
- OReilly Manufacturing Co.s cost of goods sold for the month ended July 31 was 345,000. The ending work in process inventory was 90% of the beginning work in process inventory. Factory overhead was 50% of the direct labor cost. No indirect materials were used during the period. Other information pertaining to OReillys inventories and production for July is as follows: Required: 1. Prepare a statement of cost of goods manufactured for the month of July. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information. Start by using cost of goods sold to solve for the cost of goods manufactured.) 2. Prepare a schedule to compute the prime cost incurred during July. 3. Prepare a schedule to compute the conversion cost charged to Work in Process during July.Entries and schedules for unfinished jobs and completed jobs Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations: A. Materials purchased on account, 147,000. B. Materials requisitioned and factory labor used: C. Factory overhead costs incurred on account, 6,000. D. Depreciation of machinery and equipment, 4,100. E. The factory overhead rate is 40 per machine hour. Machine hours used: F. Jobs completed: 101, 102, 103, and 105. G. Jobs were shipped and customers were billed as follows: Job 101, 62,900; Job 102, 80,700; Job 105, 45,500. Instructions 1. Journalize the entries to record the summarized operations. 2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product 8 utilized 1,100 hours, what was the total amount of overhead assigned to the products? A. $35000 B. $30.800 C. $37,800 D. $68,600