The Paris Manufacturing Company produces a single uniform product throughout the year. Which of the following product costing systems should be used by Paris? Multiple Choice Job costing Batch costing Process costing

The Paris Manufacturing Company produces a single uniform product throughout the year. Which of the following product costing systems should be used by Paris? Multiple Choice Job costing Batch costing Process costing

Name: The Paris Manufacturing Company produces a single uniform product thro
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Description: The Paris Manufacturing Company produces a single uniform product throughout the year. Which of the following product costing systems should be used by Paris? Multiple Choice Job costing Batch costing Process costing

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 1MC: Which of the following product situations is better suited to job order costing than to process...

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Electan Company produces two types of printers. The company uses ABC, and all activity drivers are duration drivers. Electan Company is considering using DBC and has gathered the following data to help with its decision. A. Activities with duration drivers: B. Activities with consumption ratios and costs: C. Products with cycle time and practical capacity: Required: 1. Using cycle time and practical capacity for each product, calculate the total time for all primary activities. Comment on the relationship to ABC. 2. Calculate the overhead rate that DBC uses to assign costs. Comment on the relationship to a unit-based plantwide overhead rate. 3. Use the overhead rate calculated in Requirement 2 to calculate (a) the overhead cost per unit for each product, and (b) the total overhead assigned to each product. How does this compare to the ABC assignments shown in Part B of the Information set? 4. What if the units actually produced were 10,000 for Printer A and 18,000 for Printer B. Using DBC, calculate the cost of unused capacity.
Which of the following production characteristics is better suited for process costing and not job order costing? Each product batch is distinguishable from the prior batch. The costs are easily traced to a specific product. Costs are accumulated by department. The value of work in process is the direct material used, the direct labor incurred, and the overhead applied to the job in process.
Delauder Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that activity-based costing system are listed below: Activity Cost Pool Supporting assembly Processing batches. Processing orders. Serving customers Number of units purchased Number of batches. Activity Measure. Direct labor-hours (DLHS) Number of batches. Number of orders. Number of customers The cost of serving customers, $1,608.00 per customer, is the cost of serving a customer for one year. Grennon Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: Number of orders Direct labor-hour requirement. Selling price Direct materials cost Direct labor cost 1,500 units 5 batches 2 orders Activity Rate $ 3.45 per DLH $ 193.30 per batch $83.05 per order. $ 1,608.00 per customer 0.25 DLHS per unit $…
For all Short Exercises, assume the weighted-average method is to be used unless you are told otherwise. Comparing job order costing versus process costing Identify each costing system characteristic as job-order costing or process costing. One Work-in-Process Inventory account Production cost reports Cost accumulated by process Job cost sheets Manufactures homogenous products through a series of uniform steps Multiple Work-in-Process Inventory accounts Costs transferred at the end of a period Manufactures batches of unique products or provides specialized services
Time-Driven Activity-Based Costing Saratoga Company manufactures jobs to customer specifications. The company is conducting a time-driven activity-based costing study in its Purchasing Department to better understand how Purchasing Department labor costs are consumed by individual jobs. To aid the study, the company provided the following data regarding its Purchasing Department and three of its many jobs: Required: 1. Calculate the cost per minute of the resource supplied in the Purchasing Department. 2. Calculate the time-driven activity rate for each of Saratoga’s three activities. 3. Calculate the total purchasing labor costs assigned to Job X, Job Y, and Job Z.
Chrzan, Incorporated, manufactures and sells two products: Product EO and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product E0 Product Ne Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Multiple Choice $33.94 per MH $54.20 per MH Direct Expected Labor-Hours Production Per Unit 10.1 410 1,550 9.1 $51.98 per MH $21.40 per MH Activity Measures DLHS orders MHs Total Direct Labor- Hours $ 301,890 61,087 585,366 $948,343 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: 4,141 14, 105 18,246 Product E 4,141 850 5,550 Expected Activity Product NO 14, 105 950 5,250 Total 18,246 1,800 10,800
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The following data is available for one department of Floral Inc., which uses weighted-average method of process costing
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