peIses and omce OVI 7. Ascertain the prime cost from the following:
Q: Distinguish between Period cost and Product cost? Give two examples of each cos
A: Classification of costs on the basis of functions:- 1. Product Cost 2. Period Cost
Q: a. what is the amount of prime costs? b. what is the amount of conversion costs?
A: Prime cost is the total direct cost incurred to manufacture a product or render a service typically…
Q: Define the following concepts: a)Prime cost b) Non production cost
A: All costs incurred are categorised into production and non production cost on the basis of the…
Q: cost t per unit an
A: Line of Best Fit A line of best fit can be defined as a straight line that denotes the best…
Q: Define the following terms: (a) cost behavior and (b) relevant range.
A: Cost behavior and relevant range are terms under cost accounting. Cost behavior studies the pattern…
Q: Discuss four example each of relevant cost and irrelevant cost.
A: Relevant cost are those cost which are pertinent to a decision. It is helpful in decision making.…
Q: Requirements a. What is the slope coefficient? b. What is the constant for the estimated cost…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: elevant cost per unit of part A1
A: Correct Answer:- Relevant cost per unit is B :- 85
Q: What is the relationship between total carrying cost and totalordering cost at the EOQ?
A: It indicates an inverse relationship between the cost of ordering and the cost of holding at…
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: 3. Why there is a need to identify the standard cost?
A: Standard cost is the estimated cost of a certain process, resource or any item.
Q: ?Which of the following statements related to cost estimation methods is true
A: Cost estimation can be defined as an approach under the project management. It is the costing…
Q: Give an example of cost which is a part of unavoidable cost.
A: Unavoidable costs are costs which cannot be avoided by discontinuing a product line or which cannot…
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: Label each of the following statements as either true (“T”) or false (“F”). Relevant costs are also…
A: Relevant costs: These costs can be defined as the costs that can be avoided if we choose over option…
Q: Explain average cost method.
A: Average cost method: Under average cost method inventories are priced at the average of all…
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: Q- 8: opportunity cost, and sunk cost. Define the following terms: differential cost,
A:
Q: Distinguish betweenproduct costs and periodcosts and give examplesof each.
A: Product cost: The product cost relates to the manufacturing costs such as direct material, direct…
Q: n be obtained from this rating?
A: Given: To analyse the cost classification with the benefits as follows,
Q: 11. Which is the following best describes a step varlable costs?
A: Step variable costs are the costs which are actually variable in nature and variable in the sense…
Q: Define ( a ) contribution margin, ( b ) contribution marginratio, and ( c ) average contribution…
A: Contribution margin helps management to determine the amount of sales revenue left after considering…
Q: Distinguish between a traceable cost and a common cost. Give several examples of each.
A: Fixed Expense: It is the expense incurred by a company not related to the volume of output…
Q: List and explain three kinds of fixed costs and three variable cost
A: As the profit is determined after considering the cost. There are two important costs that is…
Q: Question 1: Differentiate between standard cost and estimated cost.
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Give two examples of a value-added cost and two examples of a non-value-added cost.
A: Examples of value added cost:Direct materials.Direct labor.
Q: Define the following concepts: a)Prime cost b) Non production cost c)Total cost
A: The term cost refers to the monetary value of expenditure for raw materials, technology, supplies,…
Q: 6. The Fixed and variable costs are costs classification according to: A) Cost traceability B)…
A: Fixed cost refers to the costs which remain fixed or constant with the increase or decrease in the…
Q: What are the three primary cost flow assumptions? How does the specific identification method differ…
A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…
Q: Describe three alternative linear cost functions.
A: Cost Function: Cost function represents the basic change comes in the total cost due to the change…
Q: Name three factors that will affect the classification of a cost as direct or indirect?
A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…
Q: In describing the cost formula equation, Y = a + bX, which of the following is correct:
A: The cost volume formula is denoted by - Y= a + bx where- “Y” is total cost “a” is the total fixed…
Q: c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.…
A: Note 1: Under FIFO it is presumed sales are made from the earlier unit and under LIFO , it is from…
Q: Can you label revenue, loss, total costs, dollars, variable cost, and fixed cost on the provided…
A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining how any type of…
Q: Name three factors that will affect the classication of a cost as direct or indirect.
A: Cost: Cost refers to the expense incurred by the business to earn revenue from sales. In other…
Q: Complete the sentence: In a modified B/C (Benefit/Cost) Ratio... Select one: o a.disbenefits are put…
A: Answer: The correct option is option (c). The M&O costs are put in the numerator.
Q: Which method is required under GAAP? O All are acceptable methods O FIFO O LIFO O Average cost or…
A: GAAP means the generally accepted accounting principle which means that those accounting principle…
Q: A direct cost is one that is a. Variable with respect to the cost object. b. Traceable to the cost…
A: Direct cost: A cost indicates the payment of cash or the obligation to pay the cash in the future…
Q: Give four differences between implicit cost and explicit cost?
A: Explicit cost: Explicit cost refers that, a direct payment made by firm to others in course of…
Q: ases? or only in t
A: The explanation is given below ,
Q: 2. Give an example of cost which is a part of unavoidable cost.
A: An unforeseen expense is a short-term investment on which there is a definite budget commitment.…
Q: Name four approaches to estimating a cost function.
A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…
Q: Discuss the following methods used in measuring cost and rent recoveries (i)…
A: Cost measurement is necessary to know that how much cost is incurred either to manufacture or a…
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- The following information taken from Jejai Limited: Particulars DebitRM CreditRMPurchase of raw materials 258,000Fuel and light 21,000Administration salaries 17,000Factory wages 59,000Carriage outwards 4,000Rent and business rates 21,000Sales 482,000Return inward 7,000General office expenses 9,000Repairs to plant and machinery 9,000Inventory at 1 January 2020:Raw materialsWork in processFinished goods 21,00014,00023,000 Sundry accounts payable 37,000Capital 457,000Freehold premises 410,000Plant and machinery 80,000Accounts receivable 20,000Accumulated provision for depreciation on plant andmachinery 8,000 Cost in hand 11,000 TOTAL 984,000 984,000 Prepared by: Puan Siti Nor Junita Mohd Radzi Additional information:i. Inventory in hand at 31 December 2020:a. Raw materials RM25,000b. Work in process RM11,000c. Finished goods RM26,000ii. Depreciation of 10% on plant and machinery using the straight-line methodiii. 80% of fuel and light and 75% of rent and rates to be charged to…The following information is given to you from which you are required to prepare a Statement of Cost and Sales for the period ended on 30th June 2023:Consumable material: KOpening stock 20,000Purchases 122,000Closing stock 10,000Direct wages 36,000Direct Expenses 24,000Factory overheads 50 % of direct wagesOffice and administration overheads 20% of works costSelling and distribution expenses K3 per unit soldUnits of finished goods:In hand at the beginning of the period (Value K12,500) 500Units produced during the period 12,000In hand at the end of the period 1,500Profit on selling price 20% There is no work-in-progress either at the beginning or at the end of the period.4. Selected account balances for the year ended December 31 are provided below for MelodyCompany:Selling and Administrative salaries . . . . . . . . . . . . . . . . . . . . P110,000Purchases of raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . P290,000Direct Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ?Advertising expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P80,000Manufacturing overhead . . . . . . . . . . . . . . . . . . .. . . . . . . . . . P270,000Sales commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P50,000 Inventory balances at the beginning and end of the year were as follow:Beginning of the year End of the yearRaw materials . . . . . . . . . . . . . . P40,000 P10,000Work in process . .. . . . . . . .. . . ? P35,000Finished goods . . . . . . . . . . . . . P50,000 ? The total manufacturing costs for the were P683,000; the goods available for sale totaledP740,000; and the…
- 1. Jorasmi Enterprise Trial Balance as at 31 December 2020 Particulars Debit RM Credit RM Inventory of raw materials 1 Jan 2020 21,000 Inventory of finished goods 1 Jan 2020 38,900 Work in progress 1 Jan 2020 13,500 Wages (direct RM180,000, factory indirect RM145,000) 325,000 Royalties 7,000 Carriage inwards (on raw materials) 3,500 Purchases of raw materials 370,000 Productive machinery (cost RM280,000) 230,000 Administration computers (cost RM20,000) 12,000 General factory expenses 31,000 Lighting 7,500 Factory power 13,700 Administration salaries 44,000 Sales representative salaries 30,000 Commission on sales 11,500 Rent 12,000 Insurance 4,200 General administration expenses 13,400 Bank charges 2,300 Discount allowed 4,800 Carriage outwards 5,900 Sales…Jorasmi Enterprise Trial Balance as at 31 December 2020 Particulars Debit RM Credit RM Inventory of raw materials 1 Jan 2020 21,000 Inventory of finished goods 1 Jan 2020 38,900 Work in progress 1 Jan 2020 13,500 Wages (direct RM180,000, factory indirect RM145,000) 325,000 Royalties 7,000 Carriage inwards (on raw materials) 3,500 Purchases of raw materials 370,000 Productive machinery (cost RM280,000) 230,000 Administration computers (cost RM20,000) 12,000 General factory expenses 31,000 Lighting 7,500 Factory power 13,700 Administration salaries 44,000 Sales representative salaries 30,000 Commission on sales 11,500 Rent 12,000 Insurance 4,200 General administration expenses 13,400 Bank charges 2,300 Discount allowed 4,800 Carriage outwards 5,900 Sales 1,000,000 Account…Jorasmi Enterprise Trial Balance as at 31 December 2020 Particulars Debit RM Credit RM Inventory of raw materials 1 Jan 2020 21,000 Inventory of finished goods 1 Jan 2020 38,900 Work in progress 1 Jan 2020 13,500 Wages (direct RM180,000, factory indirect RM145,000) 325,000 Royalties 7,000 Carriage inwards (on raw materials) 3,500 Purchases of raw materials 370,000 Productive machinery (cost RM280,000) 230,000 Administration computers (cost RM20,000) 12,000 General factory expenses 31,000 Lighting 7,500 Factory power 13,700 Administration salaries 44,000 Sales representative salaries 30,000 Commission on sales 11,500 Rent 12,000 Insurance 4,200 General administration expenses 13,400 Bank charges 2,300 Discount allowed 4,800 Carriage outwards 5,900 Sales 1,000,000 Account…
- The Information bellow has taken from Al Wafa company wages paid to labour: OMR85,000, Purchases raw material OMR 230000, purchases return: OMR5,000, factory on cost 10% of prime cost.Opening stock work in progress OMR54000, closing stock work in progress OMR 45000, opening stock raw material OMR50000 and closing stock raw material OMR32000.The cost of good manufactured is: a. OMR364200 b. None of the options c. OMR369800 d. OMR332200Bubba Manufacturing Company provided the following information for the fiscal year toJune 30, 2020:Inventories 01/07/2019 30/06/2020Direct Materials $72,000 $65,000Work-in-Process $107,000 $128,000Finished Goods $149,500 $141,700Other information:Office cleaner’s wages 4,500Sales Revenue 1,031,000Raw materials purchased 235,000Factory wages 239,700Indirect materials 23,500Delivery truck driver’s wages 15,400Indirect labor 9,500Depreciation on factory plant & equipment 32,000Insurance 1 60,000Depreciation on delivery truck 7,250Utilities 2 118,750Administrative salaries 41,250Special Design Costs 5,000Selling expenses 9,000Sales Commission 2% of gross profit 1 Of the total insurance, 66⅔% relates to the factory facilities & 33⅓% relates to general& administrative costs.2 Of the total utilities, 80% relates to the manufacturing facilities & 20% relates to theoffice area. Requirements:…The following information is given for the activity of the accounts of the company "PLIADES" during the cost period from 1/1 – 30/6. Initial stock (r.a.) of direct materials = 5100, n.a. of semi-finished products = 6200, n.a. of finished products = 7700. During the period, purchases of materials worth 29,000 were made in cash. The cost of direct labor was 58000. The charging rate of the CBS was 25% of the cost of direct labour. Sales totaled 198,000, before returns were 1.5% of sales. Sales were made as follows: 1/3 with promissory notes, 1/3 cash and 1/3 with credit. The promissory notes incurred interest worth 1400 euros. The final stocks were: direct materials = 4500, semi-finished products = 3900 and finished products = 6800. The company's expenses during the above period were: depreciation = 1500, exhibition expenses = 800, factory insurance premiums = 650, administrative employees' fees=22000, depreciation of factory machinery = 1400, rent=6500, salesmen's travel expenses =…
- The following information is given for the activity of the accounts of the company "PLIADES" during the cost period from 1/1 – 30/6. Initial stock (r.a.) of direct materials = 5100, n.a. of semi-finished products = 6200, n.a. of finished products = 7700. During the period, purchases of materials worth 29,000 were made in cash. The cost of direct labor was 58000. The charging rate of the CBS was 25% of the cost of direct labour. Sales totaled 198,000, before returns were 1.5% of sales. Sales were made as follows: 1/3 with promissory notes, 1/3 cash and 1/3 with credit. The promissory notes incurred interest worth 1400 euros. The final stocks were: direct materials = 4500, semi-finished products = 3900 and finished products = 6800. The company's expenses during the above period were: depreciation = 1500, exhibition expenses = 800, factory insurance premiums = 650, administrative employees' fees=22000, depreciation of factory machinery = 1400, rent=6500, salesmen's travel expenses =…XYZ Incorporation provides the following financial data for the month of July 2020: Beginning Inventories 'Rs.' Direct Material 12,000 WIP - Finished Goods - 1. Purchased material on accounts for Rs. 200,000 2. Defective material returned to supplier worth Rs. 5,000 3. Material and labor issued to job during the month Direct material Direct Labor Job # 101 40,000 65,000 Job # 102 50,000 80,000 Job # 103 30,000 50,000 Job # 104 25,000 40,000 Indirect 5,000 15,000 4. FOH rate is 120% of direct labor cost 5. Actual FOH cost incurred on account Rs. 250,000 Required a) Prepare journal entries to record the…The balance sheet of Barangay Manufacturing Company showed the following balances on December 31, 2021:Finished goods - P2,100,000Work in process - 1,680,000Raw materials - 2,800,000During the first quarter of 2022, prime costs amounted to P19,152,000 while conversion costs amounted to P11,088,000. The average direct labor rate was P53.90 and overhead was applied at P43.12 per direct labor hour. Purchases of raw materials were P14,000,000 while costs of goods manufactured were P24,360,000. The company continue its policy to maintain a gross profit rate of 30%. At the end of the quarter, costs of sales amounted to P23,520,000.The change in Work in Process inventory for the first quarter is a. Increase of P280,000 b. Decrease of P7,560,000 c. Increase of P7,560,000 d. Decrease of P280,000