Average Costing
Q: Define direct labour cost variance.
A: Definition: Variance analysis: Variance analysis is the process of evaluating the differences…
Q: Explain unit product cost under variable costing.
A: Variable Costing: “Variable costing is a method that allocates only variable manufacturing costs to…
Q: Variable cost per uni
A: The total cost of production of a good comprises of the total fixed cost of production and the total…
Q: Define the term normal costing.
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Define sales volume variance.
A: Sales volume variance (also known as sales quantity variance) occurs when the actual quantity of…
Q: Describe the difference between a direct materials efficiency variance and a variable manufacturing…
A: Variable Cost:The cost which fluctuates on the basis of the output level produced. The variable cost…
Q: Define variable overhead cost variance.
A:
Q: Q- 2: and variable costing? What is the basic difference between absorption costing
A: “Since you have posted a many questions, we will solve first question for you. To get the remaining…
Q: Variable Costing Income Statement
A: Particulars in millions Total (A) Fixed (B) Variable (C = A - B) Cost of goods sold $18240…
Q: total cost function
A: We know that fixed cost remains constant irrespective of the level of activity and variable cost…
Q: ustomizing cost
A: Cost accounting is one of the accounting system that is used by the businesses. The main purpose of…
Q: How do managers plan for variable overhead costs?
A: Variable Cost: The cost which fluctuates on the basis of the output level produced. The variable…
Q: benefits of costing system
A: A costing system is prepared to analyze the costs incurred in a business organization. The system…
Q: Labor efficiency variance
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Cost
A: cost volume variance measures the difference between the cost of actual units produced and budgeted…
Q: Difference between standard cost and actual cost.
A: A standard cost is a pre-determined or pre-established cost to make a unit of finished product.…
Q: cuss the advantages and disadvantages of using variable costing
A: Answer: Variable costing is the costing system that is variable as per unit produced. The advantages…
Q: unit product cost under variable costing
A: Variable costing only takes into account the variable costs to compute the total cost.
Q: What are the factors that affect the breakeven point under (a) variable costing and (b) absorption…
A: Breakeven Point:The level of production that is required to cover the fixed costs and variable costs…
Q: Net income under Variable costing Method
A: Solution:- Calculation of Income under Variable costing method as follows:- Note:- Calculation of…
Q: Explain average cost method.
A: Average cost method: Under average cost method inventories are priced at the average of all…
Q: Explain variable overhead costs.
A: Variable Costing: “Variable costing is a method that allocates only variable manufacturing costs to…
Q: Volume-based cost systems tend to:
A: Meaning of Volume Based Cost System Volume based costing is also known as traditional costing. It is…
Q: Define backflush costing.
A: Just-in-time (JIT) manufacturing system is an approach to manufacturing that eliminates and reduces…
Q: The traditional (Volume-based cost systems) tend to:
A: Answer: Option (a) is the correct answer. Under-cost low-volume products and over-cost high-volume…
Q: What is total overhead variance
A: Meaning The Total Overhead Cost Variance is the difference between the total overhead absorbed and…
Q: Describe planning for variable overhead costs.
A: Variable Cost: The cost which is not fixed is called a variable cost. This cost is directly…
Q: Income statement under variable costing method
A: in variable costing method, product costs are only made up of variable expenses like direct…
Q: Explain this phrase, "Variable Overhead Efficiency Variance: It shows the effect of change in labour…
A: Variable Overhead Efficiency Variance: The difference between the actual time it takes to create a…
Q: Explain and describe the overhead variance.
A: Variance means when the actual cost does not match with the estimated costs. To compute the…
Q: Explain an example how to calculate cost variance.
A: Cost variance is the difference of standard cost and actual cost in manufacturing of a product. Cost…
Q: Weighted-average cost per unit
A: Inventory: Inventory means to stock it may be raw materials, work-in-process or finished goods Goods…
Q: Fixed overhead spending variance
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Difference between variable costing and absorption costing.
A: Absorption costing includes all costs, including fixed costs, related to production, while variable…
Q: Define normal costing
A: Process Costing: Process costing is a method of cost accounting, which is used when the production…
Q: Critically evaluate the concept and application of marginal costing
A: Marginal Costing :— Marginal Costing is the Part of Cost management Techniques. Marginal Costing…
Q: Define fixed overhead costs.
A: Definition: Manufacturing Overheads: The cost which is indirectly related to the production is…
Q: Define cost variance.
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: The product costs per unit under variable costing would be:
A: Variable costs are those costs that change with the change in the number of products manufactured by…
Q: Based on the above information, the variable manufacturing overhead rate variance is?
A: Formula: Variable manfacturing overhead Rate Variance= Standard Rate- Actual Rate×Actual Hours of…
Q: Using the above information derive a cost function that can be used to predict the total production…
A: High-low cost estimation method is used to segregate the fixed cost and variable cost element in…
Q: Overall Unit Contribution Margin:
A:
Q: unit contribution margin. numb
A: Unit contribution margin = Sales price per unit - Variable cost per unit
Q: direct labor rate variance
A: Direct labor rate variance = (Actual Rate - Standard Rate)* Actual Hours
Q: What is marginal costing
A: MARGINAL COSTING - - marginal costing is a technique that helps in taking managerial…
Q: Define product cost variances.
A: Product Cost variances occur when the standard cost is higher or lower than the actual costs They…
Q: total cost
A: We know that fixed cost remains constant irrespective of the level of activity and variable cost…
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- Bonita Company uses a periodic inventory system. Details for the inventory account for the month of January, 2020 are as follows: Units Per unit price Total Balance, 1/1/20 170 $5 $850 Purchase, 1/15/20 130 5.3 689 Purchase, 1/28/20 130 5.6 728 An end of the month (1/31/20) inventory showed that 180 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?Sheridan Company uses a periodic inventory system. Details for the inventory account for the month for January 2020 are as follows: Units Per unit price total Balance, 1/1/20 200 $5.00 $ 1000 Purchase, 1/15/10 150 $5.30 $795 Purchase 1/28/20 150 $ 5.60 $840 An end of month (1/31/20) inventory showed that 270 units were on hand. If the company uses FIFO and sells the units for $12 each, what is the gross profit for the month?Graham Company uses a periodic inventory system. Details for the inventory account for the month of January 2020 are as follows: Units Total Per unit price Balance, 1/1/20 400 $5.00 $2,000 Purchase, 1/15/20 200 5.30 1,060 Purchase, 1/28/20 200 5.50 1,100 An end of the month (1/31/20) inventory showed that 240 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?
- Zeller Company sells gadgets and uses the perpetual inventory system. During the month of January 2020, the number of gadgets purchased and sold was as follows: Purchased Date Units Cost 01-Jan 100 2.00 03-Jan 150 4.00 08-Jan 200 4.50 15-Jan 250 5.00 27-Jan 100 6.00 Sold 10-Jan 250* 20-Jan 350** Assume the January 10 units were sold on account for $10 each, and the January 20 units were sold on account for $11 each. *for specific identification, sold 100 units of Jan 1 and 150 units of Jan 8 (Jan 10 sale) **for specific identification, sold 100 units of Jan 3 and 250 from Jan 15 (Jan 20 sale) Required: Complete the inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions: 1. а. FIFO b. Specific identification Weighted average с. Prepare the journal entries required to record purchases and sales using the Weighted Average inventory cost flow assumption. 2. Calculate the sum of cost of goods sold…I need the step to solve this please Sheridan Company uses a periodic inventory system. Details for the inventory account for the month for January 2020 are as follows: Units Per unit price total Balance, 1/1/20 200 $5.00 $1000 Purchase, 1/15/10 150 $5.30 $795 Purchase 1/28/20 150 $ 5.60 $840 An end of month (1/31/20) inventory showed that 270 units were on hand. If the company uses FIFO and sells the units for $12 each, what is the gross profit for the month? pleaseExplain the following : 1. RAAS Company uses a periodic inventory system. Details for the inventory account for the month of January, 2020 are as follows: Units Per unit price Total Balance, 1/1/2O 200 $5.00 $1,000 Purchase, 1/15/20 100 5.30 530 Purchase, 1/28/20 100 5.50 550 An end of the month (1/31/20) inventory showed that 150 units were on hand. what is the value of the ending inventory? a) FIFO method b) LIFO method 2. Compare periodic inventory system with perpetual inventory system with an example. 3. Explain three different methods of inventory costing methods with examples 4. On May 1, 2021, Xelant Company had beginr cost of $7. During May, the company purchased inventory as follows: inventory consisting of 200 units with a unit 800 units at $7 600 units at $8 The company sold 1,000 units during the month for $12 per unit. If the average cost method is used, Compute the average cost per unit to be applied here.
- Raya Khamis Alsadi Muscat Company uses the periodic inventory system to account for inventories. Information related to Muscat Company's inventory for the month of January 2020 is given as follows: Units Per unit price Total Balance, 1/1/20 200 OMR 5.00 Purchase, 1/15/2020 100 5.30 Purchase, 1/28/2020 100 5.50 The physical inventory count on January 31 shows 120 units are on hand. Using the FIFO method, what is the cost of goods sold? Select one: O a. OMR 1,424 Ob. None of the answers are correct Oc. OMR 520 O d. OMR 656 O e. OMR 600 Coull is S OThe DJ company uses a periodic inventory system. The beginning balance of inventory and purchases made by the company during December 2020 are given below. December 01: Beginning inventory, 50 units @ Rs40 per unit. December 18: Inventory purchased, 60 units @ Rs48 per unit. December 20: Inventory purchased, 20 units @ Rs 52 per unit. December 25: Inventory purchased, 70 units @ Rs56 per unit. The DJ company sold 160 units during December 2020. Required: Compute inventory on December 31, 2020, and cost of goods sold for December using the following inventory costing method: Last in, first-out (LIFO) method. Average cost method.Johnson Company reports the following inventory information for beginning inventory, purchases, and sales for the month of January, 2020. Beginning inventory 160 units @ $250 Sale 120 units First purchase 400 units @ $260 Sale 300 units Second purchase 350 units @ $265 Sale 290 units The firm uses the perpetual inventory system and there are 200 units of the item on hand at the end of the year. 1a.What are the total cost of merchandise sold and total cost of ending inventory according to FIFO method? 1b.What are thetotal cost of merchandise sold and total cost of ending inventory according to LIFO method? 1c.What are thetotal cost of merchandise sold and total cost of ending inventory according to Weighted Average method?
- Muscat Company uses the periodic inventory system to account for inventories. Information related to Muscat Company's inventory for the month of January 2020 is given as follows: Units Per unit price Total Balance, 1/1/20 200 OMR 5.00 Purchase, 1/15/2020 100 5.30 Purchase, 1/28/2020 100 5.50 The physical inventory count on January 31 shows 120 units are on hand. Using the FIFO method, what is the cost of goods sold? Select one: O a. OMR 600 O b. OMR 520 O c. None of the answers are correct O d. OMR 1,424 O e. OMR 656Muscat Company uses the periodic inventory system to account for inventories. Information related to Muscat Company's inventory for the month of :January 2020 is given as follows Units Per unit price Total Balance, 1/1/20 200 OMR 5.00 Purchase, 1/15/2020 100 5.30 Purchase, 1/28/2020 100 5.50 The physical inventory count on January 31 shows 120 units are on hand. Using the FIFO ?method, what is the cost of goods sold اخترأحد الخيارات a. OMR 656 b. OMR 520 O c. OMR 1,424 O d. OMR 600 O e. None of the answers are correctSunland Company uses a periodic inventory system. Details for the inventory account for the month of January, 2020 are as follows: Balance, 1/1/20 Purchase, 1/28/20 Per Units unit price Total $6.00 $1260 Purchase, 1/15/20 150 210 O 180 O 300 O 30 O 330 150 5.40 5.60 810 840 An end of the month (1/31/20) inventory showed that 180 units were on hand. How many units did the company sell during January, 2020?