A company purchased machinery for $ 200,000 on 1st January . It has an estimated useful life of 10 years and an estimated salvage value of $ 20,000 . The firm sells the asset at the salvage value at the end of the 10th year. The machine has an expected production of 15000 units during its useful life . Now the production pattern is as follows : Year Production 1-3 2000 units per year 4-7 1500 units per year 8-10 1000 units per year Answer the following questions using the Units of Production Method. how depreciation expense year wise for all the years

Q: In process costing systems, costs are accumulated and assigned to: a) Products or jobs b)…

A: a) Products or jobs: Costs are attributed to specific products or jobs based on their direct and…

Q: What units (whole vs equivalent) are complete with respect to materials or conversion and what units…

A: SOLUTION-  THE ACTIVITY OF PROCESSING DEPARTMENT IN TERMS OF FULLY COMPLETED UNITS IS KNOWN AS…

Q: Which of the following is the step in which materials, labor, and overhead are detailed?

A: Direct material is the cost of the raw materials or parts that go directly into the production of a…

Q: the calculation of the equivalent unit is based on ......... of a production process

A: Equivalent units of production: Equivalent units refer to the total amount of work done on the…

Q: calculate unit manufacturing costs

A: How to Calculation unit manufacturing cost.

Q: Which of these are factory overhead

A: Factory overhead includes:     Rent cost on factory equipment     Factory utilities…

Q: How does adding direct material at the beginning or end of a process affect the equivalent unit

A: Process costing is a significantly costing system to measure, monitor and control under different…

Q: Define Work-in-process inventory.

A: Definition:   Inventory refers to the raw materials, work-in-process, and the finished goods…

Q: manufacturing overhead handled in a process cost system

A: Indirect cost is the cost that is not directly involved in the production process of the company.

Q: iscuss under what condition it would be appropriate to use a process costing system

A: Solution Concept Process costing system Process costing is a system of costing where the cost of is…

Q: Describe the use of process costing.

A: Process Costing: Process costing is method of cost accounting in which all the costs that are…

Q: how do i calculate allocated manufacturing overhead by department

A: Manufacturing overhead: The cost incurred in production process other than the cost of direct…

Q: Explain the use of costing method in the preparation of production cost report.

A: Cost:   It is an economic value incurred by the business to produce a product or to render a…

Q: Describe accounting for production activity and preparation of a process cost summary using FIFO.

A: Accounting for Production activity determines the physical flow of units, analyze equivalent units…

Q: What variables should be considered while selecting between a task order and a process cost system…

A: Process costing: process costing is a costing method used by companies that produce homogeneous…

Q: how to allocate manufacturing overhead by department?

A: Manufacturing overhead costs: The costs, which do not relate openly with the manufacturing of…

Q: Describe ways the production cost report can be used by management.

A: Production Cost Report: A report which gives information about the total units produced and total…

Q: Explain how overhead is assigned to production when a predetermined overhead rate is used?

A: Overhead is kind of cost or expenditure which is not directly related to manufacturing but somehow…

Q: How is “yield” determined for a process manufacturer?

A: Process costs It is a method of cost accounting, which is used where the production is continuous,…

Q: Under what conditions would it be appropriate to use a process costing system?

A: Process Costing: Process Costing is refer as method of costing in which all the cost which are…

Q: Describe how a single plantwide overhead allocation rate is used.

A: Cost: It refers to the economic value incurred by a company to produce a product or a service.

Q: Describe the flow of costs through a process costing system.

A: Definition:   Process costing: Process costing is a method of cost accounting in which all costs are…

Q: How does the Units-of-Production Method give accurate results?

A: Depreciation:   It is the reduction in the value of an asset due to factors like normal usage and…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.