FUNDAMENTALS OF...(LL)-W/ACCESS>CUSTOM<
6th Edition
ISBN: 9781264749225
Author: LANEN
Publisher: MCG CUSTOM
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Textbook Question
Chapter 6, Problem 29E
Basic Product Costing
Enviro Corporation manufactures a special liquid cleaner at its Green plant. Operating data for June follow:
The Green plant produced 1,275,000 gallons in June. The plant never has any beginning or ending inventories.
Required
Compute the cost per gallon of liquid cleaner produced in June.
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Enviro Corporation manufactures a special liquid cleaner at its Green Plant. Operating data for June follow:
Material $714,000
Labor 61,200
Manufacturing Overhead 244,800
The green plant produced 850,000 gallons in June. The plant never has any beginning or ending inventories.
Compute the cost per gallon of liquid cleaner produced in June.
Sunland Co. gathered the following information on power costs and factory machine usage for the last six months:
Power Cost
Factory Machine Hours
$28,390
15,800
36,069
21,400
32,895
18,700
ITT
26,235
15,100
23,890
13,500
20,700
Month
January
February
March
April
May
June
Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers.
(a)
Your answer is correct.
What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.)
Variable power costs $
(b)
eTextbook and Media
* Your answer is incorrect.
10.500
Fixed power costs
What is the estimated fixed power cost each month?
High
1.41 per factory machine hour
20,683
$
Low
Attempts: 1 of 5 used
Enviro Corporation manufactures a special liquid cleaner at its Green plant. Operating data for June follow:
Materials
$
353,000
Labor
41,000
Manufacturing overhead
230,000
The Green plant produced 1,600,000 gallons in June. The plant never has any beginning or ending inventories.
Required:
Compute the cost per gallon of liquid cleaner produced in June. (Round your answer to 2 decimal places.)
Cost per Gallon
Chapter 6 Solutions
FUNDAMENTALS OF...(LL)-W/ACCESS>CUSTOM<
Ch. 6 - How are product costing and cost allocation...Ch. 6 - What are the three criteria for the design of cost...Ch. 6 - Why are cost flow diagrams useful in describing...Ch. 6 - What are the characteristics of the following...Ch. 6 - How are job order, process, and operation costing...Ch. 6 - Describe the predetermined overhead rate. What is...Ch. 6 - Ideally, what does an allocation base reflect...Ch. 6 - What is two-stage cost allocation?Ch. 6 - What is continuous flow processing? Give at least...Ch. 6 - What is each component of the basic cost flow...
Ch. 6 - Cost allocation is arbitrary, so there is nothing...Ch. 6 - When designing a cost system, what points should...Ch. 6 - When is the basic cost flow model used? Give an...Ch. 6 - It is your first day at a new job and you talk...Ch. 6 - Rex Santos, a cost accountant, prepares a product...Ch. 6 - Prob. 16CADQCh. 6 - Identify a particular support function in a...Ch. 6 - Prob. 18CADQCh. 6 - Cost allocation bases are ideally based on a...Ch. 6 - Prob. 20CADQCh. 6 - Why might two companies in the same industry have...Ch. 6 - Is it possible for a company to have a two-stage...Ch. 6 - Your colleague says, If a company only has one...Ch. 6 - Basic Cost Flow Model Ralphs Mini-Mart store in...Ch. 6 - Basic Cost Flow Model Assume that the following...Ch. 6 - Basic Cost Flow Model Fill in the missing items...Ch. 6 - Prob. 27ECh. 6 - Prob. 28ECh. 6 - Basic Product Costing Enviro Corporation...Ch. 6 - Basic Product Costing Saras Sodas produces a...Ch. 6 - Basic Product Costing In June, Saras Sodas...Ch. 6 - Basic Product Costing In December, Saras Sodas...Ch. 6 - Basic Product Costing Big City Bank processes the...Ch. 6 - Basic Product Costing Lukes Lubricants starts...Ch. 6 - Basic Product Costing: Ethical Issues Old Tyme...Ch. 6 - Process Costing Sanchez Company produces paints....Ch. 6 - Process Costing Graham Petroleum produces oil. On...Ch. 6 - Process Costing Joplin Corporation produces syrups...Ch. 6 - Tiger Furnishings produces two models of cabinets...Ch. 6 - Refer to the data in Exercise 6-39. Compute the...Ch. 6 - Refer to the data in Exercise 6-39. Compute the...Ch. 6 - Refer to the data in Exercise 6-39. Draw the cost...Ch. 6 - Compute the predetermined overhead rate used to...Ch. 6 - Compute the predetermined overhead rate used to...Ch. 6 - Prob. 45ECh. 6 - Prob. 46ECh. 6 - The system is referred to as a two-stage cost...Ch. 6 - Channing uses a two-stage cost allocation system,...Ch. 6 - Operations Costing Howrley-David, Inc.,...Ch. 6 - Operations Costing S. Lee Enterprises produces two...Ch. 6 - Operations Costing Organic Grounds produces two...Ch. 6 - Refer to the data in Exercise 6-39. Compute the...Ch. 6 - Refer to the data in Exercise 6-39. Compute the...Ch. 6 - Refer to the data in Exercise 6-39. The president...Ch. 6 - Donovan Parents produces soccer shorts and...Ch. 6 - Owl-Eye Radiologists (OR) does various types of...Ch. 6 - Prob. 57PCh. 6 - Compute the predetermined overhead rate used to...Ch. 6 - Operations Costing Vermont Instruments...Ch. 6 - Operation Costing DiDonato Supplies manufactures...Ch. 6 - Account Analysis, Two-Stage Allocation, and...Ch. 6 - Product Costing, Cost Estimation, and Decision...
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