Process costing : It is an accounting approach that detects and accumulates direct costs and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production. Production: The act of creation or developing from components or material, or the method of being manufactured. Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user. Requirement 1: To discover cost of (a)goods transferred to finished goods from production, (b) sold goods.

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Answer 1

Question

Chapter 3, Problem 1PSA

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 1:

To discover cost of (a)goods transferred to finished goods from production, (b) sold goods.

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 2:

To explain:

Journal entries dated May 31 to record following production activities in may such as- Raw material purchase, Direct material usage, Indirect material usage, Direct labor cost, Indirect labor, factory payroll, overhead cost, Overhead applied, goods transferred to finished goods from production and sales of finished goods.

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Answer 2

Question

Chapter 3, Problem 1PSA

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 1:

To discover cost of (a)goods transferred to finished goods from production, (b) sold goods.

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 2:

To explain:

Journal entries dated May 31 to record following production activities in may such as- Raw material purchase, Direct material usage, Indirect material usage, Direct labor cost, Indirect labor, factory payroll, overhead cost, Overhead applied, goods transferred to finished goods from production and sales of finished goods.

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 1PSA

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 1:

To discover cost of (a)goods transferred to finished goods from production, (b) sold goods.

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 2:

To explain:

Journal entries dated May 31 to record following production activities in may such as- Raw material purchase, Direct material usage, Indirect material usage, Direct labor cost, Indirect labor, factory payroll, overhead cost, Overhead applied, goods transferred to finished goods from production and sales of finished goods.

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Answer 4

Question

Chapter 3, Problem 1PSA

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 1:

To discover cost of (a)goods transferred to finished goods from production, (b) sold goods.

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 2:

To explain:

Journal entries dated May 31 to record following production activities in may such as- Raw material purchase, Direct material usage, Indirect material usage, Direct labor cost, Indirect labor, factory payroll, overhead cost, Overhead applied, goods transferred to finished goods from production and sales of finished goods.

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Answer 5

Chapter 3, Problem 1PSA

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 1:

To discover cost of (a)goods transferred to finished goods from production, (b) sold goods.

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 2:

To explain:

Journal entries dated May 31 to record following production activities in may such as- Raw material purchase, Direct material usage, Indirect material usage, Direct labor cost, Indirect labor, factory payroll, overhead cost, Overhead applied, goods transferred to finished goods from production and sales of finished goods.

Answer 6

Chapter 3, Problem 1PSA

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 1:

To discover cost of (a)goods transferred to finished goods from production, (b) sold goods.

Answer 7

Chapter 3, Problem 1PSA

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 1:

To discover cost of (a)goods transferred to finished goods from production, (b) sold goods.

Answer 8

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 2:

To explain:

Journal entries dated May 31 to record following production activities in may such as- Raw material purchase, Direct material usage, Indirect material usage, Direct labor cost, Indirect labor, factory payroll, overhead cost, Overhead applied, goods transferred to finished goods from production and sales of finished goods.

Answer 9

To determine

Concept introduction:

Process costing: It is an accounting approach that detects and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include the whole month’s production.

Production: The act of creation or developing from components or material, or the method of being manufactured.

Finished goods: Finished goods are the goods that have completed the stage of the manufacturing process but have not been sold or dispersed to the end user.

Requirement 2:

To explain:

Journal entries dated May 31 to record following production activities in may such as- Raw material purchase, Direct material usage, Indirect material usage, Direct labor cost, Indirect labor, factory payroll, overhead cost, Overhead applied, goods transferred to finished goods from production and sales of finished goods.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 3 - Prob. 1MCQ Ch. 3 - Prob. 2MCQ Ch. 3 - Prob. 3MCQ Ch. 3 - Prob. 4MCQ Ch. 3 - Prob. 5MCQ Ch. 3 - What is the main factor for a company in closing...Ch. 3 - Prob. 2DQ Ch. 3 - Prob. 3DQ Ch. 3 - Prob. 4DQ Ch. 3 - Prob. 5DQ

Solution Summary: The author introduces process costing, an accounting approach that detects and accumulates direct costs, and allocates indirect costs of a manufacturing process.

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