Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Textbook Question
Chapter 6, Problem 11Q
What adjustment must be made if materials added in a department increase the number of units being processed in that department?
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Students have asked these similar questions
In a process costing system, how is the unit cost affected in a production cost report when materials are added in a department subsequent to the first department and the added materials result in additional units?
a. the first departments unit cost is increased, which necessitates an adjustment of the transferred-in unit cost
b. the first department’s unit cost is decreased, which necessitates an adjustment of the transferred-in unit cost
c. the first department’s unit cost is increased, but it does not necessitate an adjustment of the transferred-in unit cost
d. the first department’s unit cost is decreased, but it does not necessitate an adjustment of the transferred-in unit cost
How is activity-based cost allocation useful to management for control and evaluation of the performance of a department? List three points only and briefly discuss them.
Why is it necessary for the cost accountant to determine the percentage of completion in the ending work in process inventory at the end of the period? Briefly explain.
Why should the accountant distinguish between transferred-in costs and additional direct materials costs for each subsequent department in a process-costing system?
Chapter 6 Solutions
Principles of Cost Accounting
Ch. 6 - Under what conditions may the unit costs of...Ch. 6 - When is it necessary to use separate equivalent...Ch. 6 - Why is it usually reasonable to assume that labor...Ch. 6 - If materials are not put into process uniformly,...Ch. 6 - In what way do the cost of production summaries in...Ch. 6 - Why might the total number of units completed...Ch. 6 - What is the usual method of handling the cost of...Ch. 6 - If some units are normally lost during the...Ch. 6 - How is the cost of units normally lost reflected...Ch. 6 - Prob. 10Q
Ch. 6 - What adjustment must be made if materials added in...Ch. 6 - What is the difference between the unit costs are...Ch. 6 - What advantage does the FIFO cost method have over...Ch. 6 - How would you define each of the following? a....Ch. 6 - What are three methods of allocating joint costs?
Ch. 6 - Prob. 16QCh. 6 - Prob. 17QCh. 6 - Using the data given for Cases 13 below, and...Ch. 6 - Precision Inc. manufactures wristwatches on an...Ch. 6 - The following data appeared in the accounting...Ch. 6 - Conte Chemical Co. uses the weighted average cost...Ch. 6 - Assuming that all materials are added at the...Ch. 6 - Foamy Inc. manufactures shaving cream and uses the...Ch. 6 - Calculating unit costs; units lost in production...Ch. 6 - Sonoma Products Inc. manufactures a liquid product...Ch. 6 - A company manufactures a liquid product called...Ch. 6 - Using the data given for Cases 1–3 and the FIFO...Ch. 6 - Assume each of the following conditions concerning...Ch. 6 - Adirondack Bat Co. processes rough timber to...Ch. 6 - Computing joint costssales value at split-off and...Ch. 6 - LeMoyne Manufacturing Inc.’s joint cost of...Ch. 6 - Making a journal entryby-product Petrone Metals...Ch. 6 - Espana Co. makes one main product, Uno, and a...Ch. 6 - Manufacturing data for January and February in the...Ch. 6 - Manufacturing data for June and July in the...Ch. 6 - On December 1, Carmel Valley Production Inc. had a...Ch. 6 - Akron Manufacturing Co. manufactures a...Ch. 6 - Green Products Inc. cans peas and uses the...Ch. 6 - Monterrey Products Co. uses the process cost...Ch. 6 - Prob. 7PCh. 6 - Daytona Beverages Inc. uses the FIFO cost method...Ch. 6 - Clearwater Candy Co. had a cost per equivalent...Ch. 6 - Mt. Palomar Manufacturing Co. uses a process cost...Ch. 6 - Otto Inc. specializes in chicken farming. Chickens...Ch. 6 - Otto Inc. specializes in chicken farming. Chickens...Ch. 6 - Venezuela Oil Inc. transports crude oil to its...Ch. 6 - Clark Kent Inc. buys crypton for $.80 a gallon. At...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- When allocating service department costs to production departments, why is the standard cost that the service department was expected to incur, rather than the actual cost that was incurred, used in the allocation?arrow_forwardHow does management determine the order in which support department costs are allocated under the sequential method?arrow_forwardConsider which of the above costs is relevant to the decision situation? a. The cost of existing inventory, in a keep vs. disposal decision. b. The cost of special electrical wiring, in an equipment acquisition decision. c. The salary of a supervisor who will be transferred elsewhere in the organization, d. in a department-closure decision.arrow_forward
- Prior department costs are most similar to: A. Conversion costs that are added continuously throughout the process OR B. Materials added at the beginning of the periodarrow_forwardConcepts and terminology From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: The phase of the management process that uses process information to eliminate the source of problems in a process so that the process delivers the correct product in the correct quantities is called (directing, improving). Direct labor costs combined with factory overhead costs are called (prime, conversion) costs.arrow_forwardRequirements: A. What is the total Equivalent production for Materials? B. What is the total Equivalent production for Conversion? C. What is the total Cost per unit to be used for allocation? D. What is the total cost of completed and transferred that will be carried to the next department/finished goods inventory? E. What is the total cost of in process ending for the period? F. What is the equivalent production of In process, end for Conversion? G. What is the equivalent production of competed and transferred for Materials? H. How much cost from losses will be added to completed and transferred?arrow_forward
- Why should the accountant distinguish between transferred-in costs and additional direct material costs for each subsequent department in a process-costing system?arrow_forwardUsing the step-down method, what amount of Warehouse Department cost will be allocated to Department Musicarrow_forwardChoose 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_forward
- Cost Accounting - Process costing The analysis of the activity in a department or cost center for a period is called a a. Quantity report b. Cost of production report c. Cost of good manufactured report d. Equivalent production reportarrow_forward"Total costs to account for" does NOT include which of the following costs? a.ending work-in-process balance b.direct materials requisitioned for the department c.prior department costs transferred in d.beginning work-in-process balancearrow_forwardThe direct method as used is one method that can be used to re-assign service department cost.Discuss two other methods that can be used to re-assign service department overheads.arrow_forward
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