process productivity
Q: Why is the calculation of equivalent units of production needed in a process costing system?
A: Process costing: It is a method of cost accounting, which is used where the production is…
Q: Explain how nonuniform inputs and multiple departments affect process co
A: Solution Concept Process costing is a method of costing where the production process is carried out…
Q: What is activity base cost management?
A: Activity-based costing commonly referred to as ABC is a part of cost accounting. Cost accounting is…
Q: Why is cost accumulation simpler in a process costing system than it is in a job-order costing…
A: Process costing is an accounting methodology that traces and accumulates direct costs and allocates…
Q: How many Work in Process accounts are maintained in a company that uses process costing?
A: Process Costing: Process costing is a method of costing where the production is continuous and…
Q: What is the weighted-average method for process costing systems?
A:
Q: Compare process costing with job-order costing
A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: May I ask what these letter U indicate or apply in the given problem for process costing system?
A: In the above question, WIP at the beginning , units received from department 1, units received from…
Q: How does the adoption of a JIT approach to manufacturing affect process costing?
A: Introduction: JIT (JUST IN TIME); In a just-in-time (JIT) inventory control system, products are…
Q: Explain the concept of operation costing. Describe the product features and production environments…
A: Operating costing represents the sum of process costing and job costing. It has basically the…
Q: job costing system implementaion?
A: Job Costing System: The act of gathering information on the expenses associated with a particular…
Q: What types of companies use process costing systems?
A: Process Costing: Process costing is method of cost accounting in which all the costs that are…
Q: Explain how the work cell manufacturing layout increases productivity.
A: In JIT (Just-In-Time) manufacturing system, production is completed in self-contained work cells.…
Q: how to cost bwip and ewip in process costing
A: Process costing is a system in which production cost are allocated to individual production stages…
Q: Explain activity-based product costing.
A: Activity-based costing (ABC) would be a costing technique that assigns overhead and indirect costs…
Q: iscuss under what condition it would be appropriate to use a process costing system
A: Solution Concept Process costing system Process costing is a system of costing where the cost of is…
Q: In what ways are job-order and process costing similar?
A:
Q: Define constraint resources within a manufacturing company ?
A: Constraint Resources In a simple term constraint resources is defined as it is a shorter span of…
Q: What is the difference between a Job Order Cost System and a Process Cost System? Give an example…
A: Cost accounting system: Cost accounting system of an organization consists of procedures and…
Q: What is meant by the term equivalent units, with regards to process costing?
A: The term equivalent unit in process costing refers to
Q: Distinguish production procedures that match with process costing from those that correspondwith job…
A: Cost Accounting is a form of managerial accounting which aims at recording and assigning all the…
Q: What is the process costing income statement? Provide a hypothetical example of a process costing…
A: Introduction:- Process costing is a sort of accounting employed by businesses that mass manufacture…
Q: Describe accounting for production activity and preparation of a process cost summary using FIFO.
A: Accounting for Production activity determines the physical flow of units, analyze equivalent units…
Q: How does a job-costing system differ from a process-costing system?
A: Job Costing: Job costing is a process of recording the cost on the basis of manufacturing job…
Q: Under what conditions would it be appropriate to use a process costing system?
A: Process Costing: Process Costing is refer as method of costing in which all the cost which are…
Q: Why should the accountant distinguish between transferred-in costs and additional direct material…
A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…
Q: Describe the flow of costs through a process costing system.
A: Definition: Process costing: Process costing is a method of cost accounting in which all costs are…
Q: process productivity
A: Process productivity is the number of units produced per processing time. Process productivity =…
Q: What are conversion costs? Why do some companies using process costing systems use conversion costs?
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Q: 1. What do you mean by process costing? Who uses process costing give the example of company with…
A: Process costing is a method of costing which is mostly used by the companies which are engaged in…
Q: How to compute manufacturing overhead?
A: In order to manufacture the product, various indirect expenses are incurred such as indirect…
Q: What types of products would most likely be manufactured using the process cost system?
A: A process costing system is useful when in a manufacturing unit, large batches are produced. Many…
Q: Describe weighted average method under process costing.
A: Process Costing: Process costing is method of cost accounting in which all the costs that are…
Q: Prepare an REA model depicting the issuance of raw materials into the manufacturing process.…
A: The REA model for manufacturing process is given below as, For any of the manufacturing process, the…
Q: what's the difference between job order and process costing? Describe a product manufactured under…
A: Job order costing: The job order costing is a method of cost used by companies who produce unique…
Q: During production how are the costs in process costing accumlated.
A: Process costing system is a costing system in which product goes through various processes to…
Q: iscuss the Step by Step Procedure involve in process Costing including the content of Production…
A: In accounting, process costing is a method of allocating production costs to units of output.…
Q: Why is target costing most effectively applied at the researchand development and production process…
A:
Q: What is an activity-based approach to designing a costing system?
A: Activity based costing is one of the methods of costing to identify the activities performed to…
What is the process productivity in the SSD Production Department?
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- Anderson Company has the following departmental manufacturing structure for one of its products: After some study, the production manager of Anderson recommended the following revised cellular manufacturing approach: Required: 1. Calculate the total time it takes to produce a batch of 20 units using Andersons traditional departmental structure. 2. Using cellular manufacturing, how much time is saved producing the same batch of 20 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate? 3. What if the processing times of molding, welding, and assembly are all reduced to six minutes each? What is the production rate now, and how long will it take to produce a batch of 20 units?Bienestar Inc., has the following departmental structure for producing a well-known multivitamin: A consultant designed the following cellular manufacturing structure for the same product: The times above the processes represent the time required to process one unit of product. Required: 1. Calculate the time required to produce a batch of 15 bottles using a batch-processing departmental structure. 2. Calculate the time to process 15 units using cellular manufacturing. 3. How much manufacturing time will the cellular manufacturing structure save for a batch of 15 units?Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: a. Determine the activity rate for each activity. b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round to the nearest cent.
- Gumbrecht Company has the following departmental manufacturing layout for one of its plants: A consulting firm has recommended a value stream with the following manufacturing cell: Required: 1. Calculate the total time it takes to produce a batch of 20 units using the traditional departmental manufacturing layout. 2. Using cellular manufacturing, how much time is saved producing the same batch of 20 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate? 3. Assume the processing time of Casting is reduced to 9 minutes, while the times of the other processes stay the same. What is the production rate now, and how long will it take to produce a batch of 20 units if the cell is in a continuous production mode?Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Previously, Sanjay Bhatt, Firenza Companys controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 40 percent markup over full manufacturing cost. Required: 1. Calculate a plantwide rate for Firenza Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates? 3. Which bids are more accurate? Why?Young Company is beginning operations and is considering three alternatives to allocate manufacturing overhead to individual units produced. Young can use a plantwide rate, departmental rates, or activity-based costing. Young will produce many types of products in its single plant, and not all products will be processed through all departments. In which one of the following independent situations would reported net income for the first year be the same regardless of which overhead allocation method had been selected? a. All production costs approach those costs that were budgeted. b. The sales mix does not vary from the mix that was budgeted. c. All manufacturing overhead is a fixed cost. d. All ending inventory balances are zero.
- The controller for Muir Companys Salem plant is analyzing overhead in order to determine appropriate drivers for use in flexible budgeting. She decided to concentrate on the past 12 months since that time period was one in which there was little important change in technology, product lines, and so on. Data on overhead costs, number of machine hours, number of setups, and number of purchase orders are in the following table. Required: 1. Calculate an overhead rate based on machine hours using the total overhead cost and total machine hours. (Round the overhead rate to the nearest cent and predicted overhead to the nearest dollar.) Use this rate to predict overhead for each of the 12 months. 2. Run a regression equation using only machine hours as the independent variable. Prepare a flexible budget for overhead for the 12 months using the results of this regression equation. (Round the intercept and x-coefficient to the nearest cent and predicted overhead to the nearest dollar.) Is this flexible budget better than the budget in Requirement 1? Why or why not?In 20x2, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the companys productivity: Required: 1. Calculate the productivity profile for 20x1. 2. Calculate the productivity profile for 20x2, and comment on the effect of the new production and assembly process. 3. What if the labor hours used in 20x2 were 112,500? What does comparison of the 20x1 and 20x2 profiles now communicate?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.
- Evans, Inc., has a unit-based costing system. Evanss Miami plant produces 10 different electronic products. The demand for each product is about the same. Although they differ in complexity, each product uses about the same labor time and materials. The plant has used direct labor hours for years to assign overhead to products. To help design engineers understand the assumed cost relationships, the Cost Accounting Department developed the following cost equation. (The equation describes the relationship between total manufacturing costs and direct labor hours; the equation is supported by a coefficient of determination of 60 percent.) Y=5,000,000+30X,whereX=directlaborhours The variable rate of 30 is broken down as follows: Because of competitive pressures, product engineering was given the charge to redesign products to reduce the total cost of manufacturing. Using the above cost relationships, product engineering adopted the strategy of redesigning to reduce direct labor content. As each design was completed, an engineering change order was cut, triggering a series of events such as design approval, vendor selection, bill of materials update, redrawing of schematic, test runs, changes in setup procedures, development of new inspection procedures, and so on. After one year of design changes, the normal volume of direct labor was reduced from 250,000 hours to 200,000 hours, with the same number of products being produced. Although each product differs in its labor content, the redesign efforts reduced the labor content for all products. On average, the labor content per unit of product dropped from 1.25 hours per unit to one hour per unit. Fixed overhead, however, increased from 5,000,000 to 6,600,000 per year. Suppose that a consultant was hired to explain the increase in fixed overhead costs. The consultants study revealed that the 30 per hour rate captured the unit-level variable costs; however, the cost behavior of other activities was quite different. For example, setting up equipment is a step-fixed cost, where each step is 2,000 setup hours, costing 90,000. The study also revealed that the cost of receiving goods is a function of the number of different components. This activity has a variable cost of 2,000 per component type and a fixed cost that follows a step-cost pattern. The step is defined by 20 components with a cost of 50,000 per step. Assume also that the consultant indicated that the design adopted by the engineers increased the demand for setups from 20,000 setup hours to 40,000 setup hours and the number of different components from 100 to 250. The demand for other non-unit-level activities remained unchanged. The consultant also recommended that management take a look at a rejected design for its products. This rejected design increased direct labor content from 250,000 hours to 260,000 hours, decreased the demand for setups from 20,000 hours to 10,000 hours, and decreased the demand for purchasing from 100 component types to 75 component types, while the demand for all other activities remained unchanged. Required: 1. Using normal volume, compute the manufacturing cost per labor hour before the year of design changes. What is the cost per unit of an average product? 2. Using normal volume after the one year of design changes, compute the manufacturing cost per hour. What is the cost per unit of an average product? 3. Before considering the consultants study, what do you think is the most likely explanation for the failure of the design changes to reduce manufacturing costs? Now use the information from the consultants study to explain the increase in the average cost per unit of product. What changes would you suggest to improve Evanss efforts to reduce costs? 4. Explain why the consultant recommended a second look at a rejected design. Provide computational support. What does this tell you about the strategic importance of cost management?The management of Wheeler Company has decided to develop cost formulas for its major overhead activities. Wheeler uses a highly automated manufacturing process, and power costs are a significant manufacturing cost. Cost analysts have decided that power costs are mixed; thus, they must be broken into their fixed and variable elements so that the cost behavior of the power usage activity can be properly described. Machine hours have been selected as the activity driver for power costs. The following data for the past eight quarters have been collected: Required: 1. Prepare a scattergraph by plotting power costs against machine hours. Does the scatter-graph show a linear relationship between machine hours and power cost? 2. Using the high and low points, compute a power cost formula. 3. Use the method of least squares to compute a power cost formula. Evaluate the coefficient of determination. 4. Rerun the regression and drop the point (20,000; 26,000) as an outlier. Compare the results from this regression to those for the regression in Requirement 3. Which is better?Mabbut Company has the following departmental manufacturing layout for one of its plants: A consulting firm recommended a value stream with the following manufacturing cell: Required: 1. Calculate the total time it takes to produce a batch of 10 units using the traditional departmental manufacturing layout. 2. Using cellular manufacturing, how much time is saved producing the same batch of 10 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate? 3. Assume the processing time of Welding is reduced to 6 minutes, while the times of the other processes stay the same. What is the production rate now, and how long will it take to produce a batch of 10 units if the cell is in a continuous production mode?