Connect Access Card For Fundamentals Of Cost Accounting
6th Edition
ISBN: 9781260708738
Author: William N. Lanen Professor, Shannon Anderson Associate Professor, Michael W Maher
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 8, Problem 45E
Cost of Production: Weighted-Average and FIFO
Under which of the following conditions will the first-in, first-out (FIFO) method of
- a. When goods produced are homogeneous.
- b. When there is no beginning inventory.
- c. When there is no ending inventory.
- d. When beginning and ending inventories are each 50 percent complete.
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The FIFO method of process costing intermingles current costs of production with costs of beginning inventory in computing the cost per equivalent unit.
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True
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Under variable costing, all fixed manufacturing costs are treated as a a. product cost included in the cost of goods manufactured. b. product cost included in the cost of ending inventory. c. period expense deducted from manufacturing margin. d. period expense deducted from contribution margin.
Under absorption costing, which of the following costs would not be included in finished goods inventory?
a.direct labor cost
b.direct materials cost
c.variable and fixed selling and administrative expenses
d.variable and fixed factory overhead cost
Chapter 8 Solutions
Connect Access Card For Fundamentals Of Cost Accounting
Ch. 8 - What are the characteristics of industries most...Ch. 8 - A manufacturing company has records of its...Ch. 8 - If costs increase from one period to another, will...Ch. 8 - What are the five steps to follow when computing...Ch. 8 - What is the distinction between equivalent units...Ch. 8 - Which method, weighted-average or FIFO, better...Ch. 8 - It has been said that a prior departments costs...Ch. 8 - The more important individual unit costs are for...Ch. 8 - Assume that the number of units transferred out of...Ch. 8 - The management of a liquid cleaning product...
Ch. 8 - We have discussed two methods for process costing,...Ch. 8 - A friend owns and operates a consulting firm that...Ch. 8 - The controller of a local firm that uses a...Ch. 8 - Throughout the chapter, we treated conversion...Ch. 8 - Consider a manufacturing firm with multiple...Ch. 8 - Prob. 16CADQCh. 8 - Would process costing work well for a service...Ch. 8 - Compute Equivalent Units: Weighted-Average Method...Ch. 8 - Compute Equivalent Units: FIFO Method Refer to the...Ch. 8 - Compute Equivalent Units: Weighted-Average Method...Ch. 8 - Compute Equivalent Units: FIFO Method Refer to the...Ch. 8 - Compute Equivalent Units Magic Company adds...Ch. 8 - Equivalent Units: Weighted-Average Process Costing...Ch. 8 - Prob. 24ECh. 8 - Prob. 25ECh. 8 - Compute Equivalent Units: Ethical Issues Aaron...Ch. 8 - Equivalent Units and Cost of Production By...Ch. 8 - Compute Costs per Equivalent Unit:...Ch. 8 - Compute the cost per equivalent unit for materials...Ch. 8 - Compute Equivalent Units: FIFO Method Materials...Ch. 8 - Compute Equivalent Units and Cost per Equivalent...Ch. 8 - Cost Per Equivalent Unit: Weighted-Average Method...Ch. 8 - Compute Costs per Equivalent Unit:...Ch. 8 - Refer to the data in Exercise 8–33. Compute the...Ch. 8 - Using the data in Exercise 8-33, compute the cost...Ch. 8 - Refer to the data in Exercises 8-33 and 8-35....Ch. 8 - Compute Costs per Equivalent Unit:...Ch. 8 - Refer to the data in Exercise 8-37. Compute the...Ch. 8 - Refer to the data in Exercise 8-37. Compute the...Ch. 8 - Prob. 40ECh. 8 - Prepare a Production Cost Report: FIFO Method...Ch. 8 - Prob. 42ECh. 8 - Prepare a Production Cost Report: Weighted-Average...Ch. 8 - Prob. 44ECh. 8 - Cost of Production: Weighted-Average and FIFO...Ch. 8 - Operation Costing: Ethical Issues Brokia...Ch. 8 - Prob. 47ECh. 8 - Prob. 48ECh. 8 - Prob. 49ECh. 8 - Suppose the marketing manager’s suggestion is...Ch. 8 - Prob. 51PCh. 8 - Prob. 52PCh. 8 - Prob. 53PCh. 8 - Prob. 54PCh. 8 - Prepare a production cost report for June for the...Ch. 8 - Prob. 56PCh. 8 - Prob. 57PCh. 8 - Prob. 58PCh. 8 - Prob. 59PCh. 8 - Prob. 60PCh. 8 - Prob. 61PCh. 8 - Prob. 62PCh. 8 - Prob. 63PCh. 8 - Prob. 64PCh. 8 - Prob. 65PCh. 8 - Prob. 66PCh. 8 - Prob. 67PCh. 8 - Process Costing and Ethics: Increasing Production...
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- Which is nor needed to compute equivalent units of production? A. the percentage of completion for inventory still in process B. the number of units transferred out C. the number of units started and completed D. the material cost per unitarrow_forwardIn what way do the cost of production summaries in Chapter 6, prepared using the weighted average cost method, differ from the cost of production summaries presented in Chapter 5? What is the reason for this difference?arrow_forwardIn the variable costing income statement, how are the fixed manufacturing costs reported, and how are the fixed selling and administrative expenses reported?arrow_forward
- In the variable costing income statement, how are the fixed manufacturing costs reported, and how are the fixed selling and administrative expenses reported?arrow_forwardIn the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs C. total costs D. units of productionarrow_forwardWhich of the following is not relevant is not relevant in determining weighted average unit cost in process costing? a. Equivalent unit of production in beginning inventory. b. Equivalent unit of production in ending inventory. c. Cost of beginning inventory. d. Units completed.arrow_forward
- Which TWO of the following statements concerning marginal costing are TRUE? A. Closing inventories are valued at full production cost. B. Fixed costs are treated as a period cost and are charged in full to the income statement of the accounting period in which they are incurred. O.C. Marginal cost is the cost of a unit which would be avoided if that unit were not produced. OD. Contribution is calculated as sales revenue plus all variable costs.arrow_forwardWhich of the following is not relevant is not relevant in determining weighted average unit cost in process costing? A. Cost of beginning inventory. B.Equivalent unit of production in ending inventory. C. Equivalent unit of production in beginning inventory. D.Units completed.arrow_forwardThe cost of the ending inventory under absorption costing is higher than the cost of ending inventory under varibale costing by   1. an amount equal to the fixed overhead cost per unit. 2. an amount computed by multiplying the units in the ending inventory by the fixed costs per unit. 3. an amount equal to the difference in the income amounts under both costing methods. 4. the amount equal to the fixed overhead cost charged to expense during the period.arrow_forward
- Under absorption costing, which of the following costs would be included in finished goods inventory? a. direct materials, direct labor, and variable selling and administrative costs b. direct labor, direct materials, variable factory overhead, and variable selling costs c. direct labor, direct materials, and all factory overhead costs d. direct materials cost and fixed administrative costsarrow_forwardWhich of the following is not relevant is not relevant in determining weighted average unit cost in process costing? Group of answer choices  Cost of beginning inventory. Units completed. Equivalent unit of production in beginning inventory. Equivalent unit of production in ending inventory.arrow_forwardA. Compute for the ending Finished Goods Inventory under Absorption costing B. Compute for the Ending Finished Goods Inventory under Variable Costing methodarrow_forward
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