Define product cost

Explain the purpose of product costing.

Define target full product cost.

explain the concept of equivalent units in cost accounting

Assume that the following balance sheets are stated at book value. The fair market value of James's fixed assets is equal to $9,300. Jurion pays $16,000 for James and raises the needed funds through an issue of long-term debt. Jurion Co. Current Current assets $ 12,000 $ 5,300 liabilities Net fixed 36,000 Long-term debt 9,800 assets Equity 32,900 Total $48,000 Total $48,000 James, Inc. Current assets $3,400 Current liabilities$ 1,300 Net fixed assets 6,400 Long-term debt 1,900 Equity 6,600 Total $9,800 Total $9,800 Construct a postmerger balance sheet assuming that Jurion Co. purchases James, Inc., and the purchase method of accounting is used. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Jurion Co., post-merger Current assets Fixed assets Current liabilities Long-term debt Goodwill Equity Total Total

Describe the term target costing.