Cost that arises during manufacturing maybe classified according to element, nature, function or behavior. As part of the Cost Accounting team you are asked to classify the following cost correctly. Fill in the columns with the correct classification. COST MATERIALS, LABOUR OR DIRECT OR EXPENSE INDIRECT Packing Materials Rent of Factory Wages of factory workers

Cost that arises during manufacturing maybe classified according to element, nature, function or behavior. As part of the Cost Accounting team you are asked to classify the following cost correctly. Fill in the columns with the correct classification. COST MATERIALS, LABOUR OR DIRECT OR EXPENSE INDIRECT Packing Materials Rent of Factory Wages of factory workers

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 11MC: Which is not a task typically associated with ABC systems? A. calculating the overhead application...

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Activity Levels and Cost Drivers Shroeder Machine Shop has the following activities:a. Machine operationb. Machine setupc. Production schedulingd. Materials receivinge. Research and developmentf. Machine maintenanceg. Product designh. Parts administrationi. Final inspection of a sample of productsj. Materials handlingRequired1. Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity.2. Identify a potential cost driver for each activity in requirement 1.
Problem No. 2(Cost Accounting) Determine the following using the First-In First-Out (FIFO) method of process costing 1. Equivalent units of production for materials and conversion cost 2. unit costs, and; 3. Inventory values
Primare Corporation provided the following data for last month's manufacturing operations. Purchases of raw materials Indirect materials used in production Direct labor $ 30,000 $4,930 $ 60,000 $7,500 $ 4,130 Manufacturing overhead applied to work in process Underapplied overhead Rav materials Work in process Finished goods Beginning $ 11,900 $ 54,100 $34,900 Required: 1 Prepare a schedule of cost of goods manufactured. 2. Prepare a schedule of cost of goods sold. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Direct materials Required 1 Required 2 Prepare a schedule of cost of goods manufactured. Inding $19,500 $ 67,000 $ 43,200 Total raw materials available Pamare Corporation Schedule of Cost of Goods Manufactured Raw materials used in production Direct materials used in production
Q.3.4 Briefly discuss the following concepts. Your discussion should include reference as to how it is determined: Actual manufacturing overhead costs. Budgeted manufacturing overhead costs. Allocated or applied manufacturing overhead costs. ●
2. Matching Activity with Cost Drivers For each cost pool below, identify an appropriate cost driver. a. order departmentb. accounts receivable processingc. cateringd. raw material inventory
Which of the following descriptions is notcorrect?a. The routing sheet shows the manufacturingpath for a particular product.b. Bill of materials shows the cost of producing asingle unit.c. Move ticket authorizes the movement of abatch from one department to another.d. Materials requisition authorizes the storekeeperto release materials.
Required information[The following information applies to the questions displayedbelow.]We discuss how to prepare the process costing production reportusing the weighted-average method. In addition, we discuss that aproduction report is a summary of what occurs in the productionprocess, and includes information about the number of physicalunits, number of equivalent units, cost per equivalent unit, and areconciliation of the cost of Work in Process Inventory. Knowledge Check 01Paula's Fab Tee Company, which prints T-shirts, has three processingdepartments (printing, labeling, and packaging). The total cost per equivalentunit was $17.80 for the printing department, $0.80 for the labeling department,and $0.40 for the packaging department. The total cost of the 1,450 units thatwere transferred out of the Work in Process Inventory (Packaging) account tothe Finished Goods Inventory account was:
Systems Concepts, Traditional versus Activity-Based Cost Accounting Systems The following items are associated with a traditional cost accounting information system, an activity-based cost accounting information system, or both (that is, some elements are common to the two systems): Required: 1. Select the appropriate categories for each of the following items: a. Usage of direct materials b. Direct materials cost assigned to products using direct tracing c. Direct labor cost incurrence d. Direct labor cost assigned to products using direct tracing e. Setup cost incurrence f. Setup cost assigned using number of setups as the activity driver g. Setup cost assigned using direct labor hours as the activity driver h. Cost accounting personnel i. Submission of a bid, using product cost plus 25 percent j. Purchasing cost incurrence k. Purchasing cost assigned to products using direct labor hours as the activity driver l. Purchasing cost assigned…
Which of the following would NOT be considered an activity for the purposes of an activity-based costing system? O Machine Set ups %3D O Inspections O Machining O Direct Materials Cost %3D
Job order costing and process costing both: O a. All the given answers are correct. O b. assign direct materials cost, direct labor cost, and manufacturing overhead costs to products. O c. compute product cost per unit in the same manner. O d. use the same manufacturing accounts, including Manufacturing Overhead, Raw Materials, Work in Process, and Finished Goods. e. both allocate applied manufacturing overhead cost to product cost.
Preparation of service manual by an electronic manufacturer is an example of A. Unit level activity B. Batch level activity C. Product level activity D. Not considered under Activity Based Costing
Which best describes the flow of overhead costs in an activity-based costing system? Group of answer choices Overhead costs –> direct labor cost or hours –> products Overhead costs –> products Overhead costs –> activity cost pools –> cost drivers –> products Overhead costs –> machine hours –> products