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: Describe fixed manufacturing overhead under absorption costing.

A: Absorption costing: Under this method, manufacturing cost such as direct material and labor is…

Q: Define cash and cash equivalents and explain how to report them.

A: Cash and cash equivalents are the current assets of a company which are available as cash or readily…

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: Define equivalent units of production.

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

Q: calculate unit manufacturing costs

A: How to Calculation unit manufacturing cost.

Q: Conversion cost is: *   a. Combination of direct materials and direct labor       b. Combination of…

A: The costs incurred on production includes direct material costs, direct labor cost and manufacturing…

Q: Which of these are factory overhead

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

Q: Which of the following is a conversion cost?A. raw materialsB. direct laborC. sales commissionsD.…

A: Conversion costs seem to be the expenses of converting raw resources into finished goods. In cost…

Q: How is the Conversion Costs account used in JIT costing?

A: Just-in-time manufacturing system: Just-in-time (JIT) manufacturing system is an approach to…

Q: By reference to the above data, explain the concept of equivalent units in process costing.

A: In process costing, some units may have fully finished but other units may still be under…

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: How to calculate manufacturing costs

A: How to calculate manufacturing costs.

Q: In a process costing system, the cost per equivalent unit must be computed before computing…

A: Note : Cost per equivalent units = Cost / Equivalent units

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: An activity-based overhead rate is computed as follows: actual overhead divided by estimated use of…

A: Activity-based costing (ABC) is a complex but accurate cost allocation method for a product or…

Q: Calculate the total absorbtion rate used to apportion manufacturing overhead by?

A: The absorption rate is assigned according to the various allocation grounds. Hours of direct work…

Q: Compute predeterminedoverhead rates and explainwhy estimated overhead costs(r ather than actual…

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

Q: Formula for computing the unit cost of transferred out units

A: In the process costing the cost of each stage is added to the completed units in the same process.

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…

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.