Ch. 5 Practice Questions Pg. 387 #4 The formula for estimating cost behavior is y=a + bx.  Explain what each term represents.

Q: During December, Rian Company's Department B equivalent unit product costs, computed under the…

A: The information gave the question: The prices of the Following: Materials: P1Conversion:…

Q: Neem Company uses a job-order cost system. The following information was recorded for May (SEE…

A: Cost of goods manufactured for May Job No May 1 Inventory Direct materials Direct Labor Overhead…

Q: The following information regarding inventory policy was assembled by the GB Inc. The company uses a…

A: Reorder point = (Weekly demand x lead time) + safety stock

Q: The managers of GB Inc. are discussing ways to allocate the cost of service departments such as:…

A: Quality control cost allocated to maintenance = P350,000 * 7000/35000 = P70,000 Total cost of…

Q: Chris Company showed cost of goods sold of P 4,320,000 in its statement of comprehensive income…

A: Cost of goods manufactured = Cost of goods sold / (1 - 20%) = P4320000 / (1-0.20) = P5,400,000 Total…

Q: Q1) Below are the examples of cost objects, except: a. product b. services c. department d.…

A: Cost object means something that the company should measure separately as a object which is…

Q: Chris Corporation has developed the following flexible budget formula for the linear annual indirect…

A: Indirect labor cost means the labor cost incurred in factory but is not directly related with the…

Q: Assuming that joint product costs are allocated using

A: The cost function is a function that is used to show how production expense will change at different…

Q: You are the general manager of a highly automated coffee production plant in Laguna. You have been…

A: Factory overhead applied = Conversion costs - Direct labor costs = P1,300,000 - P200,000 =…

Q: If GB Inc. has material cost of P10,000 in the July 1 RIP Inventory account, and P12,500 in the July…

A: Raw Materials Purchased = Closing Inventory Account + Raw Materials used - Opening Inventory…

Q: Which of the following is a manufacturing overhead and a fixed c O a. Wood used in a table. O b.…

A: Ans. Manufacturing overhead are the indirect costs in the production process. Fixed costs are the…

Q: Believing that its traditional cost system may be providing misleading information, an entity is…

A: Activity based costing means where the overhead is allocated on the basis of work involved and not…

Q: Which of the following statements is true? * O a. A common cost is one type of direct cost. O b. A…

A: The question is related to Choose which of the statement is true.

Q: GB Inc. which began operations in 2020, produces gasoline and a gasoline by-product. The following…

A: Working Notes: 1. Total sales = Gasoline sales + By-product sales  = P270,000 + P30,000 = P300,000…

Q: The balance in Branch Co.'s Work in Process inventory account was P15,000 on June 1 and P18,000 on…

A: Solution: Cost of goods manufactured = Beginning WIP + Direct materials + Direct labor +…

Q: If a company's variable costs are 70% of sales, which formula represents the computation of peso…

A: Solution: If variable cost is 70% of sales and  profit is 10% for sale, it means: Fixed costs = 20%…

Q: GB Inc. produces three products. Production and cost information s PICTURE BELOW): Inspection costs…

A: Ans. Inspection cost will be allocated on the basis of number of inspections.

Q: Chris Corporation manufactures metal chips. The following data was available for the year: Raw…

A: The question is related to conversion cost. Conversion cost = Direct labor + Manufacturing…

Q: Which of the following cost behavior assumptions is false? * a. Variable costs are constant if…

A: Solution: Cost behavior assumptions that is false is "Total fixed costs decrease as the level of…

Q: Q # 1 Write a Paragraph of 100 – 150 words for the following: Scope of Cost Accounting Component…

A: Cost accounting is the branch of accounting in which costs structures are prepared in which the…

Q: Chris Company produced and sold 1,000 units during its first month of the following cost and…

A: Ans. Selling and Administrative costs are not allocated to the product cost.

Q: A chemical company which uses a joint process manufactures products 0,P and M, which are all derived…

A: Total Additional cost for Product O = No. of units x Additional cost per unit = 2000 x P0.80 = P…

Q: GB Inc. manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The…

A: Activity based costing means where the overhead is allocated on the basis of work involved and not…

Q: The following summations are available: Sum of hours: 860 Sum of costs: 4,120 Sum of hours x cost:…

A: The question is based on the concept of cost accounting.

Q: Problem no. 2 Elijah Inc. produces accent stripes for automobiles in 50-inch rolls. Each roll passes…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Jacob Manufacturing Corp's Job 402 for the manufacture of 2,000 coats, which was completed during…

A: The question is based on the concept of cost accounting.

Q: During May, ABC Corporation incurred the following costs on Job A for the manufacture of 2,000…

A: Total manufacturing cost of reworking = (Direct material + direct labor + Factory overhead) x No. of…

Q: Standard: Direct labor hours per unit Variable overhead per hour Fixed overhead per hour (based on…

A: Standard hours for actual production = 4400*2.20 = 9680 hours

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.