Accounting: What the Numbers Mean
Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Chapter 14, Problem 14.14E
To determine

Concept Introduction:

Budget: It is forward looking exercise which the company takes by preparing estimated revenues, costs and resources needed by company for a period. It can be prepared for single period or for multiple periods

Standard Product Cost: The estimated raw material consumed to make one unit of finished goods is calculated and raw material cost for one unit of finished goods is calculated. The direct labor required manufacturing one unit of finished goods and direct labor cost is calculated. The manufacturing overhead per unit is calculated. The total of raw material, direct labor and manufacturing overhead per unit is the standard product cost per unit

REQUIREMENT (a)

To calculate:

The standard raw material cost of one bottle of new cleaner

To determine

Concept Introduction:

Budget: It is forward looking exercise which the company takes by preparing estimated revenues, costs and resources needed by company for a period. It can be prepared for single period or for multiple periods

Standard Product Cost: The estimated raw material consumed to make one unit of finished goods is calculated and raw material cost for one unit of finished goods is calculated. The direct labor required manufacturing one unit of finished goods and direct labor cost is calculated. The manufacturing overhead per unit is calculated. The total of raw material, direct labor and manufacturing overhead per unit is the standard product cost per unit

REQUIREMENT (b)

Any other factors to recommend for preparing estimate of standard raw material cost

To determine

Concept Introduction:

Budget: It is forward looking exercise which the company takes by preparing estimated revenues, costs and resources needed by company for a period. It can be prepared for single period or for multiple periods

Standard Product Cost: The estimated raw material consumed to make one unit of finished goods is calculated and raw material cost for one unit of finished goods is calculated. The direct labor required manufacturing one unit of finished goods and direct labor cost is calculated. The manufacturing overhead per unit is calculated. The total of raw material, direct labor and manufacturing overhead per unit is the standard product cost per unit

REQUIREMENT (c)

The process to determine the standard direct labor cost for one bottle of cleaner

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