Johnston Corp. manufactures computer desks in its Syracuse. New York, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead). Its activities and related data follow Click the icon to view the activity areas and related data.) Read the requirements Materials handling Assembling Painting Total manufacturing cost Number of units Manufacturing cost per unit Requirement 2. Premanufacturing activities, such as product design, were assigned to the Standard desks at $5 each and to the Unpainted desks at $3 each. Similar analyses were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The post-manufacturing costs were $20 per Standard and $10 per Unpainted desk Compute the full product costs per desk Standard Desk Unpainted Desk Full product cost per unit Requirement 3. Which product costs are reported in the external financial statements? Which costs are used for management decision making? Explain the difference are reported in the financial statements. Managers use ▼ However, these costs often are Requirement 4. What price should Johnston's managers set for Standard desks to earn a $39 profit per desk? Sales price per unit-standard desk for decisions such as pricing and product emphasis. Full product costs include the that are expensed as incurred for external reporting
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![Johnston Corp. manufactures computer desks in its Syracuse, New York, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead). Its activities and related data follow
EEE (Click the icon to view the activity areas and related data.)
Read the requirements.
Materials handling
Assembling
Painting
Total manufacturing cost
Number of units
Manufacturing cost per unit
Requirement 2. Premanufacturing activities, such as product design, were assigned to the Standard desks at $5 each and to the Unpainted desks at $3 each. Similar analyses were conducted of post-manufacturing activities: has distribution, marketing, and customer service. The post-manufacturing costs were $20
per Standard and $19 per Unpainted desk. Compute the full product costs per desk.
Standard Desk
Unpainted Desk
Full product cost per unit
Requirement 3. Which product costs are reported in the external financial statements? Which costs are used for management decision making? Explain the difference.
are reported in the financial statements. Managers use
However, these costs often are
V
Requirement 4. What price should Johnston's managers set for Standard desks to earn a $39 profit per desk?
Sales price per unit - standard desk
✔for decisions such as pricing and product emphasis. Full product costs include the
that are expensed as incurred for external reporting.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32a4d647-987c-4ad2-891e-f9e898d9a146%2F2f0d8f11-58f9-4f00-95c3-e7aec16256cd%2F59rs4mb_processed.png&w=3840&q=75)
![Budgeted Cost
of Activity
Activity
Materials handling ... S
Assembling ....
S
Painting
S
Product
Standard desk ..
Unpainted desk...
300,000 Number of parts
2,500,000 Direct labor hours
Allocation Base
$
0.60
$
14.00
190,000 Number of painted desks $
4.90
Johnston produced two styles of desks in March: the Standard desk and Unpainted desk. Data for
each follow:
Total
Units
Total Direct Total Number
Produced Materials Costs of Parts
114,000
39,900
6,000 $
2,500 $
Print
Done
Cost Allocation
Rate
121,000
31,000
Total Assembling
Direct Labor Hours
6,000
1,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32a4d647-987c-4ad2-891e-f9e898d9a146%2F2f0d8f11-58f9-4f00-95c3-e7aec16256cd%2Fngfndz_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)