COST ACCOUNTING
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ISBN: 9781323927397
Author: Pearson
Publisher: PEARSON
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Chapter 18, Problem 18.18MCQ
Healthy Dinners Co. produces frozen dinners for the health conscious consumer. During the quarter ended September 30, the company had the following cost data:
| Dinner ingredients | $3,550,000 |
| Preparation labor | 900,000 |
| Sales and marketing costs | 125,000 |
| Plant production overhead | 50,000 |
| Normal food spoilage | 60,000 |
| Abnormal food spoilage | 40,000 |
| General and administrative expenses | 75,000 |
Based on the above, what is the total amount of period expenses reflected in the company’s income statement for the quarter ended September 30?
- a. $200,000
- b. $240,000
- c. $290,000
- d. $300,000
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Savoury Foods, Inc. prepares meals for several airlines, and sales average 300,000 meals per month. The significant costs of each meal prepared are for the meat, vegetables, plastic trays and utensils; no desserts are provided because the airlines are concerned about cost control. The company prepares meals in batches of 1,000. The data are shown in the company’s accounting records for June 2020:
Cost of meat for 1,000 meals ₱18,000
Cost of vegetables for 1,000 meals 7,200
Cost of plastic trays and utensils for 1,000 meals 2,400
Direct labor cost for 1,000 meals 19,000
Monthlyoverhead charges amount to ₱24,000,000 and are fully fixed. Company management has asked you to answer the following items.
a. What is the cost per meal based on average sales and June prices?
b. If sales increase to 400,000 meals per month, what will be the cost per meal (assuming that the cost behavior patterns remain the same as in June)?
c. Assume that the sales increase to 400,000 meals per month. The…
Murphy’s Foods produces frozen meals, which it sells for $7 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company’s first two months in business:
The table shows the following data with cost in dollars:
Sales
January: 1,400 meals
February: 1,600 meals
Production
January: 2,000 meals
February: 1,400 meals
Variable manufacturing expense per meal
January: 5
February: 5
Sales commission expense per meal
January: 1
February: 1
Total fixed manufacturing overhead
January: 700
February: 700
Total fixed marketing and administrative expenses
January: 500
February: 500
Requirements
1. Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for…
Gia’s Foods produces frozen meals, which it sells for $8 each. The company computes a new monthly fixed manufacturing overhead rate based on the planned number of meals to be produced that month. All costs and production levels are exactly as planned. The following data are from Gia’s Foods first month in business.
January 2007
Sales 1,000 meals
Production 1,400 meals
Variable manufacturing cost per meal $4.00
Sales commission cost per meal $1.00
Total fixed manufacturing overhead $700
Total fixed marketing and administrative costs $600
Requirements:
Compute the product cost per meal produced under absorption…
Chapter 18 Solutions
COST ACCOUNTING
Ch. 18 - Why is there an unmistakable trend in...Ch. 18 - Distinguish among spoilage, rework, and scrap.Ch. 18 - Normal spoilage is planned spoilage. Discuss.Ch. 18 - Costs of abnormal spoilage are losses. Explain.Ch. 18 - What has been regarded as normal spoilage in the...Ch. 18 - Units of abnormal spoilage are inferred rather...Ch. 18 - In accounting for spoiled units, we are dealing...Ch. 18 - Total input includes abnormal as well as normal...Ch. 18 - Prob. 18.9QCh. 18 - The unit cost of normal spoilage is the same as...
Ch. 18 - In job costing, the costs of normal spoilage that...Ch. 18 - The costs of rework are always charged to the...Ch. 18 - Abnormal rework costs should be charged to a loss...Ch. 18 - When is a company justified in inventorying scrap?Ch. 18 - How do managers use information about scrap?Ch. 18 - Prob. 18.16MCQCh. 18 - Which of the following is a TRUE statement...Ch. 18 - Healthy Dinners Co. produces frozen dinners for...Ch. 18 - Fresh Products, Inc. incurred the following costs...Ch. 18 - Normal and abnormal spoilage in units. The...Ch. 18 - Weighted-average method, spoilage, equivalent...Ch. 18 - Weighted-average method, assigning costs...Ch. 18 - FIFO method, spoilage, equivalent units. Refer to...Ch. 18 - FIFO method, assigning costs (continuation of...Ch. 18 - Weighted-average method, spoilage. LaCroix Company...Ch. 18 - FIFO method, spoilage. 1. Do Exercise 18-25 using...Ch. 18 - Spoilage, journal entries. Plastique produces...Ch. 18 - Recognition of loss from spoilage. Spheres Toys...Ch. 18 - Weighted-average method, spoilage. LogicCo is a...Ch. 18 - FIFO method, spoilage. Refer to the information in...Ch. 18 - Standard-costing method, spoilage. Refer to the...Ch. 18 - Spoilage and job costing. (L. Bamber) Barrett...Ch. 18 - Reworked units, costs of rework. Heyer Appliances...Ch. 18 - Scrap, job costing. The Russell Company has an...Ch. 18 - Weighted-average method, spoilage. World Class...Ch. 18 - FIFO method, spoilage. Refer to the information in...Ch. 18 - Weighted-average method, shipping department...Ch. 18 - FIFO method, shipping department (continuation of...Ch. 18 - Physical units, inspection at various levels of...Ch. 18 - Spoilage in job costing. Jellyfish Machine Shop is...Ch. 18 - Rework in job costing, journal entry (continuation...Ch. 18 - Scrap at time of sale or at time of production,...Ch. 18 - Physical units, inspection at various stages of...Ch. 18 - Weighted-average method, inspection at 80%...Ch. 18 - Job costing, classifying spoilage, ethics....
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