the following standard ca ued by the cost accountin standard costing policy of unit Standard cost
Q: After understanding and studying Standard Costing: 1. Which of the following management function is…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
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: Required: Compute the following: 1. The standard cost per unit of product. 2. The actual cost per…
A: Here in this question, we are required to calculate standard cost, actual cost per unit and standard…
Q: Conversion costs include A. product and period costs B. direct labor and manufacturing overhead…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Prepare (a) Statement of Equivalent Production Equivalent Units Input Units Output Items Units Qty…
A: Statement of Equivalent production Statement of Cost Statement of Valuation
Q: weighted-average method of process costing
A: Weighted-Average Method: The cost of products for sale is divided by the number of units available…
Q: What will the unit product cost under Full costing method.
A: Formula: Unit product cost = Direct material + Direct labor + Variable manufacturing overhead +…
Q: Which of the following is a carefully predetermined cost that is usually expressed on a per unit of…
A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…
Q: Which of the following is a conversion cost?A. raw materialsB. direct laborC. sales commissionsD.…
A: Conversion costs seem to be the expenses of converting raw resources into finished goods. In cost…
Q: Which of the following statements is true? Multiple Cholce Varlable costing treats direct materials…
A: The period costs are the costs which are expensed in the period they are incurred. Example selling…
Q: explain the differences in the characteristics of the order costing method with the process costing…
A: Order costing is used to identify the manufacturing cost of each product. It is used by the company…
Q: What is the weighted-average method for process costing systems?
A:
Q: Both the equivalent units schedules and the physical flow are prerequisites to calculating the…
A: The question is related to Process Costing. There are two methods of equivalent units 1. FIFO 2.…
Q: By use of relevant examples, differentiate between the following: a. Relevant costs and Non-relevant…
A: In general words, cost means money that is spent to gain something. In accounting terms, the cost is…
Q: A costing approach in which all manufacturing costs are product costs." This statement best…
A: All manufacturing cost will include the direct material , direct labor , variable and fixed…
Q: Activity based costing
A: Definition: Costing: Costing is calculated as an amount spent by the company in order to produce a…
Q: Describe management’s use of absorption and variable costing.
A: Absorption costing is also known as Full absorption costing. It is one of the managerial accounting…
Q: Which costing techniques are related to a predetermined cost as a performance targe and actual…
A: Solution: "Standard costing" are related to a predetermined cost as a performance target and actual…
Q: what is the cost of the units issued under the FIFO costing method?
A: FIFO is first in first out inventory valuation method in which inventories purchased first will be…
Q: Income statement under variable costing method
A: in variable costing method, product costs are only made up of variable expenses like direct…
Q: Under an activity-based costing system, what is the per-unit overhead cost of Z?
A: Activity-based Costing which is more popularly known as the ABC method is an accounting method in…
Q: Compute predeterminedoverhead rates and explainwhy estimated overhead costs(r ather than actual…
A: Cost: It is the economic value incurred by the business to manufacture a product or to render a…
Q: Question: Unlike the traditional full-absorption cost system, activity-based costing (ABC) assigns:
A: Companies always have the problem which they have to tackle very cautionary is the allocation of the…
Q: What is the primary difference between the two cost accounting, systems regarding the accumation of…
A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…
Q: Explain the use of costing method in the preparation of production cost report.
A: Cost: It is an economic value incurred by the business to produce a product or to render a…
Q: Explain how to prepare production cost report using the weighted average method.
A: Process cost summary: Process cost summary is prepared separately for each production department or…
Q: ost classifications used for assigning costs to cost objects include: Multiple Choice Variable cost…
A: Cost Classification Determining the cost in the organisation is one of the important part in the…
Q: "Under variable costing system, the unit product cost includes:" "Direct materials, direct…
A: Variable costs are those costs which changes directly with change in level of activity. If level of…
Q: The cost equation and the distinction between product and period costs are described
A: The cost equation and the distinction between product and period costs are described will be…
Q: Activity based costing system differs from traditional costing systems in the treatment of, A)…
A: Direct costs are the cost that can be traced on the process and production of goods.
Q: Activity Based Costing classified costs into A. Three Groups - material, labour and overhead B.…
A: Under Activity-based costing, indirect costs are divided on the basis of the activity among the…
Q: A costing system where all product costs are recorded at standard cost while the products are being…
A:
Q: Calculate overhead cost under: a. Traditional volume based costing system b. ABC system
A: Answer:
Q: COST ACCOUNTING - Process Costing Make a table for the solution. Compute for the equivalent…
A: The equivalent units are calculated on the basis of percentage for the completion of the work during…
Q: Compute the indirect manufacturing costs allocated to each product using activity based costing.
A: Activity based costing is a costing system in which indirect costs or overheads are allocated to…
Q: What is meant by the statement that “labor costing is related to motion costing”
A: Labor Cost- Labor is the only factor in the organization which have unlimited productivity. Labor…
Q: What is the right cost hierarchy in Activity-Based-Costing ABC Select one: O a. Organization,…
A: Activity based costing means costing method in which all indirect costs or overheads are allocated…
Q: a. What was Product Z’s unit cost under absorption costing? b. What was Product Z’s unit cost under…
A: Absorption costing and Variable costing are two types of costing methods that are being used in the…
Q: Required: Compute the unit product cost under absorption costing. Compute the unit product cost…
A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…
Q: Below are the different types of costing system except: a. overhead costing b. Traditional costing…
A: A costing system is used for the purpose of measuring or analyzing the costs in order to determine…
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: Under variable costing, a unit of product includes which costs? A. direct material, direct labor,…
A: Variable costing: In the process of variable costing the fixed manufacturing overhead are not to be…
Q: Contrast the productcosts computed under activitybased costing and conventionalcosting methods
A: ABC Costing: The Activity-Based costing system is a way of assigning a cost to the product and…
Q: Choose the three components of product cost from the list below. a) Indirect material, direct…
A: Product costs seem to be the expenses involved in the production of goods that have been meant for…
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- Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: aCalculated using number of dies as the single unit-level driver. bCalculated by multiplying the consumption ratio of each product by the cost of each activity. Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each product. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities. 2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome. 3. What if activities 1, 2, 5, and 8 each had a cost of 650,000 and the remaining activities had a cost of 50,000? Calculate the cost assigned to Wafer A by a fully specified ABC system and then by an approximately relevant ABC approach. Comment on the implications for the approximately relevant approach.For E2-17, prepare any journal entries that would have been different if the only trigger points had been the purchase of materials and the sale of finished goods. Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?
- 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.At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows: During the year, the company had the following activity: Actual fixed overhead was 12,000 less than budgeted fixed overhead. Budgeted variable overhead was 5,000 less than the actual variable overhead. The company used an expected actual activity level of 12,000 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold. Required: 1. Compute the unit cost using (a) absorption costing and (b) variable costing. 2. Prepare an absorption-costing income statement. 3. Prepare a variable-costing income statement. 4. Reconcile the difference between the two income statements.
- Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results: Required: 1. Using the results from the method of least squares, prepare a cost formula for the receiving activity. 2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? (Note: Round your answer to the nearest dollar.) 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
- Summarized data for Backdraft Co. for its first year of operations are as follows: A. Prepare an income statement under absorption costing B. Prepare an income statement under variable costingWyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?