Give examples of substantive proceduresin the production cycle and relate themto assertions about significant accountbalances at the end of the period.

Q: (a) Perform the first-stage allocation of costs to the activity cost pools. (b) Compute the activity…

A: Astoms Asbestos Ltd. is in the business of removing potentially toxic asbestos insulation and…

Q: The auditor tests the quantity of materials charged to work-in-process by vouching these quantities…

A: Production Cycle:   The process that accounts the transformation of raw materials into finished…

Q: List the four steps in accounting for production activity in a reporting period (for process…

A: Process Costing: Process costing is method of cost accounting in which all the costs that are…

Q: When the predetermined overhead rate is based on the level of activity at capacity, an item called…

A: Variable cost: It is the cost that varies with the change in the level of activity

Q: Which of the following best describes the activities of the production function?a. maintenance,…

A:

Q: ) what is the under-or-over allocated indirect production (overhead) costs? Discuss methods of…

A: Overhead means the all indirect expenses which were incurred in the manufacturing the product or…

Q: Of the step method of allocation is used, how much supervision to production department No. 1 be

A: Service department cost Allocation: the service department cost of a company is allocated to the…

Q: Describe a walkthrough of a production transaction from receiving production orders to making an…

A: The auditor will conduct a walkthrough by talking to the employees of the organization regarding…

Q: On the cost reconciliation part of the production report, the weighted-average method treats…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: Which of these statement is TRUE for a standard cost system? A) Standard cost systems help managers…

A: Lets understand the basics. Standard cost is a cost which is decide by management to be incurred…

Q: Explain whether the cost accounting system primarily supports internal or external reporting.

A: Cost Accounting System: Cost accounting system refers to as a framework designed by the company to…

Q: What is a production report? What purpose does this report serve?

A: Production refers to the sum total of value of goods created by an entity over a particular time…

Q: What is the most important purpose of the cost of production report

A: Given: The importance and use of cost of production report.

Q: ompanies that manufacture a product face an expanded set of accounting issues. In addition to the…

A: Answer: Material Price Variances:   It is the difference  between the standard cost of material…

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: At what level of details the work packages need to be described to take place in work breakdown…

A: Organization Structure- The organizational structure is a hierarchy/system that the organization…

Q: What document signals the completion of the production process?

A:

Q: Identify significant accounts and relevant assertions related to the production cycle.

A: Definition: Management Assertion: Management assertion refers to the claims made by the management…

Q: g form

A:

Q: Describe the distinctive characteristic of weighted-average computations in assigning costs to units…

A: Weighted Average Method:Weighted average method is the method in which per unit cost is calculated…

Q: Describe ways the production cost report can be used by management.

A: Production Cost Report: A report which gives information about the total units produced and total…

Q: What is the most significant function of a cost of production report, and why is it important? What…

A: The significance and use of a cost of production report:

Q: After discussing the treatment of process losses and abnormal effectiveness in process accounts…

A: Process costing is a type of costing system under which cost of product is determined at each…

Q: When testing a company’s cost accounting system, the auditor uses procedures that are primarily…

A:

Q: Which one of the following statements correctly describes the nature of Weighted Average method of…

A: Perpetual inventory system: Under this inventory system, the records of inventory are continuously…

Q: Using average costing, compute for the ending balance of work in process that will be included in…

A: While computing closing WIP value, The computation of equivalent units of production.as compared to…

Q: What types of management reports are prepared by the cost accounting system?

A: Definition: Cost accounting systems: It is a system which measures, record, and reports the product…

Q: One of the primary uses of a cost of production report is to assist management in controlling…

A: Production Cost Report:   A production cost report is used by the firm to summarise the production…

Q: Describe how the functions of (a) authorization of production transactions, (b) recording of…

A:

Q: Which of the following is the basic purpose of a responsibility accounting?a. variance analysisb.…

A: Definition: Responsibility accounting: The management of responsibility centers by the means of…

Q: What features of the cost accounting system would be expected to prevent the omission ofrecording…

A: Cost accounting is the branch of Accountancy associated with the cost of materials used in the…

Q: “To ensure unbiased cost allocations, fixed costs should be allocated on the basis of estimated…

A: Cost:   It is the monetary value incurred by a company to produce a product or a service.

Q: Under the weighted average method, the equivalent units used to compute the unit costs of ending…

A: Solution: 1. False, Under the weighted average method, the equivalent units used to compute the unit…

Q: How is activity-based cost allocation useful to management for control and evaluation of the…

A: Note : We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: An auditor reviews job cost sheets to test which transaction assertion?a. Occurrence.b.…

A: Audit:   It is an examination of the financial statements of the company. It helps in determining…

Q: by comparison with procedures used for determining year end physical inventory. It is not unusual…

A: Process costing is a costing method used mostly in manufacturing where units are mass-produced in a…

Q: Describe how the over or under application of overhead should be corrected in the accounting…

A: Over application of overhead: A corporation is said to have overapplied overhead when the actual…

Q: Discrete production losses are assumed to occur uniformly throughout the process. a. Both…

A: Weighted average method is a method employed in process costing to quantify the number of units and…