Horngren's Cost Accounting, Student Value Edition (16th Edition)
16th Edition
ISBN: 9780134476032
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 18, Problem 18.31E
Standard-costing method, spoilage. Refer to the information in Exercise 18-29. Suppose LogicCo determines standard costs of $215 per equivalent unit for direct materials and $92 per equivalent unit for conversion costs for both beginning work in process and work done in the current period.
- 1. Do Exercise 18-29 using the standard-costing method.
Required
- 2. What issues should the manager focus on when reviewing the equivalent units calculation?
18-29 Weighted-average method, spoilage. LogicCo is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs are added evenly during the process. Some units of this product are spoiled as a result of defects not detectable before inspection of finished goods. Spoiled units are disposed of at zero net disposal value. LogicCo uses the weighted-average method of
Summary data for September 2017 are as follows:
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Answer
1. Which of the following costs/expenses is included in product costs under both
absorption costing and variable costing?
A) Equipment depreciation.
B) Variable manufacturing costs.
Variable selling expenses.
D) Supervisory salaries.
2. What is the costing method that can be used most easily with break-even analysis and
other cost-volume-profit techniques?
A) Process costing.
B) Job-order costing.
C) Absorption costing.
D) Variable costing.
3. The Predetermined Overhead Rate is $18.50 per machine hour. During the year, actual
manufacturing overhead expenses incurred were $456,000 and the machine operated for
24,550 hours. This means:
A) Manufacturing overhead is overapplied
B)
Before any adjustments, net income is understated
C) No journal entry is needed
D) The balance in the MOH account is zero
E) None of the above
4. Why would an activity-based costing system that is designed for internal decision
making NOT conform to generally accepted accounting principles?
A) First-stage…
5. Match the following cost pools and activities with the most appropriate cost driver.
Group of answer choices
a. number of parts
b. square feet
c. direct labor hours
d. number of tests required
e. machine hours
f. machine setups
g. number of orders received
1. setup cost pool?
2. assembly cost pool?
3. supervising cost pool?
4. testing cost pool?
5. ordering cost pool?
6. fringe…
Shubelik Company is changing to an activity-based costing method. It has determined that it will use three cost pools: setups, inspections, and assembly. Which of the following would not be used as the activity base for any of these three activities?
a.number of setups
b.number of units to be produced
c.number of inspections
d.number of direct labor hours
Chapter 18 Solutions
Horngren's Cost Accounting, Student Value Edition (16th Edition)
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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