Stage of Completion Units Materials Conversion Cost Beginning work-in-process Units started during the period Units completed and transferred Ending work-in-process 18,000 60% 20% 100,000 94,000 24,000 80% 40% Costs follows: Costs Incurred Materials Direct Labor Factory Overhead $ 17,640 391,160 $ 72,000 $ 22,500 Beginning work-in-process Units started during the period 468,000 182,880

2. Distinguish between product costs and period costs. 6. What is the difference between gross margin and manufacturing margin?

The equation for total costs (Y) is: Y = a+ bX In this equation, “a” represents:  Net income Cost of goods sold Total fixed costs The level of activity (e.g., the number of units produced) Total variable costs Variable cost per unit of X Total revenue

Summary for Cost Volume Profit Analysis

What is  the difference between variable costing and absorption costing income statements? a.      Provide a hypothetical income statement in both formats in which the number of units sold is different from the number of units manufactured. b.     Explain the contrast between the two formats.

The decision of whether to process products beyond the splitoff process should be based on which of the following?   Select one: a. Production cost analysis b. Revenue analysis c. Incremental operating income attainable beyond the splitoff point d. Relevant cost analysis e. Gross margin analysis

estion 2 Which of the following way of cost assignment used to assign accumulated cost with an indirect relationship to a cost object? Cost allocation Cost tracing Cost accumulation Cost assignment

Which of the following is the most commonly used method for assignment of joint costs? a. Relative sales value b. Split-off method c. Average production cost d. Relative percentage of direct costs basis

Use the cost per equivalent unit to assign costs to the work completed during the period.

When computing the cost per equivalent unit under the wighted-average method of process costing, the cost per equivalent unit for direct material is computed by dividing the total direct-material cost by the total equivalent units. True or False?