Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 3, Problem 8QC
To determine
To identify: Whenever direct material, direct labor, and manufacturing overhead are recorded on a
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Calculate a job cost using ABC (Learning Objective 2)Oliver Industries, a small, family-run manufacturer, has adopted an ABC system . The fol- lowing manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been estimated for the year :54-7Direct materials ................................................................................ ? Direct labor ...................................................................................... ? Manufacturing overhead ...... .......... .......... ............. ................. .......... ? Total job cost .................................................................................... $?Classifying costs within the cost hierarchy (Learning Objective 2) Classify each of the following costs as either unit-level, batch-level, product-level, orfacility-level.a. Engineering costs for new productb. Order processingc. Depreciation on factoryd. Direct labore. Shipment of an order to a customerf. Product line manager…
Click to watch the Tell Me More Learning Objective 1 video and then answer the questions below.
1. Which of the following manufacturers is most likely to use a process cost system?
Purse manufacturer
Sports drink manufacturer
Automobile manufacturer
Guitar manufacturer
2. Process and job order cost systems are similar in that both systems _______.
record and summarize product costs
classify product costs as direct materials, direct labor, and factory overhead
allocate factory overhead costs to products
All of these choices are correct.
Click to watch the Tell Me More Learning Objective 2 video and then answer the questions below.
1. The first step in preparing a cost of production report is to _____.
compute equivalent units of production
determine the units to be assigned costs
determine the cost per equivalent unit
allocate costs to units transferred out and partially completed units
2. The last step in preparing a cost of production report is to _____.
compute equivalent units of production
determine the units to be assigned costs
determine the cost per equivalent unit
allocate costs to units transferred out and partially completed units
Chapter 3 Solutions
Managerial Accounting (5th Edition)
Ch. 3 - (Learning Objective 1) For which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 3) The amount of manufacturing...Ch. 3 - (Learning Objective 4) Which of the following is...Ch. 3 - (Learning Objective 5) Which of the following is...Ch. 3 - (Learning Objective 5) Assuming the amount of...Ch. 3 - Prob. 8QCCh. 3 - Prob. 9QCCh. 3 - Prob. 10QC
Ch. 3 - Identify product costs, period costs, and product...Ch. 3 - Decide on product costing system (Learning...Ch. 3 - Determine the flow of costs between inventory...Ch. 3 - Understanding key document terms in a job cost...Ch. 3 - Compute a professional billing rate (Learning...Ch. 3 - Prob. 3.6SECh. 3 - Continuation of S3-6: compute total allocated...Ch. 3 - Continuation of S3-7: determine over- or under...Ch. 3 - Prob. 3.9SECh. 3 - Calculate job cost and billing at appliance repair...Ch. 3 - Calculating overallocated or underallocated...Ch. 3 - Prob. 3.12SECh. 3 - Record manufacturing labor costs (Learning...Ch. 3 - Prob. 3.14SECh. 3 - Prob. 3.15SECh. 3 - Understanding key terms (Learning Objectives 1, 2,...Ch. 3 - Identify type of costing system (Learning...Ch. 3 - Prob. 3.18AECh. 3 - Determine the cost of a job and use it for pricing...Ch. 3 - Compute a predetermined overhead rate and...Ch. 3 - Prob. 3.21AECh. 3 - Prob. 3.22AECh. 3 - Determine the cost of a job (Learning Objectives...Ch. 3 - Compare bid prices under two different allocation...Ch. 3 - Analyze manufacturing overhead (Learning...Ch. 3 - Record manufacturing overhead (Learning Objectives...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze T-accounts (Learning Objectives 2, 3, 5, ...Ch. 3 - Job cost and bid price at a consulting firm...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Identify type of costing system (Learning...Ch. 3 - Understand the flow of costs in a job cost shop...Ch. 3 - Prob. 3.33BECh. 3 - Prob. 3.34BECh. 3 - Prob. 3.35BECh. 3 - Sustainability and job costing (Learning...Ch. 3 - Determine the cost of a job (Learning Objectives...Ch. 3 - Compare bid prices under two different allocation...Ch. 3 - Analyze manufacturing overhead (Learning...Ch. 3 - Record manufacturing overhead (Learning Objectives...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze T-accounts (Learning Objectives 2, 3, 5, ...Ch. 3 - Prob. 3.43BECh. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze Manufacturing Overhead (Learning...Ch. 3 - Use job costing at an advertising agency (Learning...Ch. 3 - Use job costing at a consulting firm (Learning...Ch. 3 - Prepare job cost record (Learning Objectives 2, 3,...Ch. 3 - Determine and record job costs (Learning...Ch. 3 - Determine flow of costs through accounts (Learning...Ch. 3 - Analyze Manufacturing Overhead (Learning...Ch. 3 - Use job costing at an advertising agency (Learning...Ch. 3 - Use job costing at a consulting firm (Learning...Ch. 3 - Prepare job cost record (Learning Objectives 2, 3,...Ch. 3 - Determine and record job costs (Learning...Ch. 3 - Determine flow of costs through accounts (Learning...Ch. 3 - Job costing or process costing for wedding...Ch. 3 - Discussion Questions 1. Why would it be...Ch. 3 - Unwrapped or How Its Made Go to www.YouTube.com...Ch. 3 - Ethics involved with choice of cost driver...Ch. 3 - Prob. 3.61ACTCh. 3 - Issues with cost of job (Learning Objectives 2, 3,...
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- Click to watch the Tell Me More Learning Objective 4 video and then answer the questions below. 1. Which of the following represents the computation of direct materials cost per equivalent unit? Total direct cost for the period divided by total equivalent units of direct materials. Total equivalent units of direct materials divided by total direct cost for the period. Total direct cost for the period divided by total units of direct materials. Total units of direct materials divided by total direct cost for the period. 2. What is the conversion cost per equivalent unit, when the total conversion cost for the period is $1,225 and the total units of packaged drinking water produced during the same period is 5,000 gallons (70 percent complete). $0.17 per gallon $0.35 per gallon $2.86 per gallon None of these choices are correct.arrow_forwardI have the following information: direct materials $250 and total manufacturing cost $700. Overhead applied to jobs at a rate of 200% of direct labor cost. This is for Chapter 2 job costing in managerial accounting. I am supposed to figure out conversion cost, direct labor cost, and manufacturing overhead. I know the formula for conversion cost= direct labor + manufacturing OH Prime cost= direct labor + direct materials How do I figure out direct labor cost with the given information? The learning objective states calcualte predetermined overhead rate, but I do not have estimated manufacturing cost and estimated labor. Can you please help? Thanks, Erica Gordonarrow_forwardd. What was the cost of products completed during Febuary? e. What was the balance of the Work-in-Process Inventory account at the end of Fabuary? f. What was the operating profit for Febuary? Any over- or underapplied overhead is written off to Cost of Goods Sold? Please provide an explanation it would be of great help with my learning. Thank you <3arrow_forward
- Learning Outcomes Addressed: This assessment item addresses the following unit learning outcomes (ULOs) as described in the Unit Outline: 1. Clear understanding of various cost terms, cost behaviour and the role of overhead cost in pricing decisions 2. Ability to apply Activity Based Costing (ABC) techniques to an actual business in order to arrive at the most accurate costing for products. requirement: kindly adress these two question in detail. (please avoid any kind of plagorism and copy past and then paraphrasing )arrow_forwardChoose the journal entry. 1. Direct Materials used in the production Dr Work In process Inventory; Cr Materials Inventory Dr Materials Inventory; Cr Work In process Inventory Dr Factory overhead Inventory; Cr Work In process Inventory Dr Factory overhead Inventory; Cr Materials Inventory 2.Indirect Materials used in the production Dr Factory overhead Inventory; Cr Materials Inventory Dr Materials Inventory; Cr Work In process Inventory Dr Factory overhead Inventory; Cr Work In process Inventory Dr Work In process Inventory; Cr Materials Inventory 3. Record the accrued Direct Labor Dr Factory overhead; Cr Finished goods inventory Dr Finished goods inventory; Cr Work In process Inventory Dr Work In process Inventory; Cr Salary Payable Dr Materials Inventory; Cr Work In process Inventoryarrow_forwardChoose the journal entry 4. Record the cost of goods manufactured Dr Factory overhead; Cr Finished goods inventory Dr Work In process Inventory; Cr Finished goods Inventory Dr Finished goods inventory; Cr Work In process Inventory Dr Materials Inventory; Cr Work In process Inventory\ 5. Record the purchased Indirect Materials on account Dr Factory overhead inventory; Cr Accounts payable Dr Materials inventory; Cr Accounts payable Dr Factory overhead inventory; Cr Cash Dr Materials inventory; Cr Casharrow_forward
- Choose the best answer choice for each question 1. In a process cost system, the amount of work in process inventory at the end of a period is valued by a.summing the costs remaining in each department account at the end of the period. b.summing estimated costs budgeted for the inventory during the period. c.summing direct labor costs for the period. d.summing all actual costs that flowed through the department from the beginning to the end of the period. 2. What is the journal entry for the application of Factory Overhead to Work in Process if the driver is imprinted, the rate is $1.80 per imprint, and the imprint meter reads 1,780 at the start of the day and 2,890 at the end of the day? a. Work in Process1.80 Factory Overhead1.80 b. Work in Process1,998 Factory Overhead1,998 c. Work in Process1,998 Cash1,998 d. Work in Process1,998 Depreciation Expense1,998 3. The journal entry to record applied factory overhead includes a(n) a.decrease to Work in Process. b.increase to…arrow_forwardThe entry to recognize the completion and transfer of a job so that it can be placed in stock would include a.debiting Finished Goods and crediting Work in Process. b.debiting Work in Process and crediting Finished Goods. c.debiting Finished Goods and crediting Cost of Goods Sold. d.debiting Work in Process and crediting Cost of Goods Sold.arrow_forwardThe purchase of manufacturing supplies is normally recorded as a debit to Group of answer choices raw materials inventory administrative expenses work in process manufacturing overheadarrow_forward
- Following items belong to the revenue, expenditure, human resources/payroll, production, or financing cycle. Classify each item based on the cycle it belongs to. a. Pay pay-as-you-earn (PAYE) payroll taxes b. Send material requisition to inventory c. Issue stock to investors d. Borrow money from the bank to purchase a new factory e. Complete receiving report f. Appoint replacement purchasing clerk g. Measure employee performance using a performance management system h. Choose suitable supplier of raw materials i. Ensure employees are up to date with the latest tax provisions j. Record personal and tax information for new employeesarrow_forwardWhat type of cost accounting system would be most appropriate to be used by a graduation invitation printing company? Group of answer choices Not enough information to determine Preplacement cost system Process cost system Job order cost systemarrow_forwardQuestion. Signify the account that should be DEBITED to record each transaction below. Group of answer choices A. The consumption of direct materials in the manufacturing process. [ Choose ] Manufacturing overhead Selling, general and administrative expenses Work in process Cost of goods sold Finished goods Raw materials B. The consumption of indirect materials in the manufacturing process. [ Choose ] Manufacturing overhead Selling, general and administrative expenses Work in process Cost of goods sold Finished goods Raw materials C. The cost of direct labor incurred in the manufacturing process. [ Choose ] Manufacturing overhead Selling, general and administrative expenses Work in process Cost of goods sold Finished goods Raw materials D. The cost of indirect labor incurred in the manufacturing process. [ Choose ] Manufacturing overhead Selling, general and administrative expenses Work in process Cost of goods sold Finished goods Raw materials E. The allocation of manufacturing…arrow_forward
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Cost Classifications - Managerial Accounting- Fixed Costs Variable Costs Direct & Indirect Costs; Author: Accounting Instruction, Help, & How To;https://www.youtube.com/watch?v=QQd1_gEF1yM;License: Standard Youtube License