E3-7 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (Weighted-Average Method) [LO 3-2, 3-3] Silver Company manufactures kites and has the following information available for the month of April: Work in process, April 1 (100% complete for materials, 46% for conversion) Direct materials 33,000 units 50,000 56,000 Conversion cost $ Number of units started 79,000 units April costs Direct materials 106,000 171,000 Conversion cost Work in process, April 30 (100% complete for materials, 29% for conversion) 36,000 units EA CA

E3-7 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (Weighted-Average Method) [LO 3-2, 3-3] Silver Company manufactures kites and has the following information available for the month of April: Work in process, April 1 (100% complete for materials, 46% for conversion) Direct materials 33,000 units 50,000 56,000 Conversion cost $ Number of units started 79,000 units April costs Direct materials 106,000 171,000 Conversion cost Work in process, April 30 (100% complete for materials, 29% for conversion) 36,000 units EA CA

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Manufacturing overhead is what is left after subtracting direct labor and direct material from total manufacturing costs. True or False True False
Which of the following is not a method of cost absorption? (a) Percentage of direct material cost (b) Machine hour rate (c) Labour hour rate (d) Repeated distribution method
Discuss the difference between cost accumulation, tracing and allocation. Since all manufacturing cost are eventually included in the unit cost of a product, what difference does it make? Discuss why the distinction matter in the calculation of CVP or other metrics.
For the weighted average method of process costing, the: total cost of completed units equals the total cost of ending work in process. unit cost of materials equals the unit cost for conversion costs. equivalent units for conversion costs are higher than the equivalent units for materials. flow of physical units produces the same results as the computations for equivalent units. None of the above is true.
Which of the following correctly describes the term cost driver? a.The primary factor which is correlated with the amount of cost incurred to produce a product b.The total material, labor, and overhead cost of a completed job c.The inflation rate which causes costs to rise d.The initial purchase price of direct materials
Which of the following is a benefit of activity-based cost management system? a.It makes it easy to identify the overall activities that bear an influence on cost. b.It is inexpensive. c.It enhances strategic planning. d.It ensures allocation of all costs on the basis of machine hours.
The direct costs of materials that change with the number of units produced is an example of a fixed production cost. True or false
Question Describe how Required Production in Units is calculated. Do not write formula only. The description should not be longer than a page.
Which of the following is a correct statement? Check only those that are correct. Choose All That Apply Cost tracing is when a cost is attributed directly to a cost object.Cost tracing is when a cost is attributed directly to a cost object. Cost accumulation is the process of gathering cost information about each cost object.Cost accumulation is the process of gathering cost information about each cost object. Cost allocation is when a cost is applied or assigned to a cost object based on a certain factor.Cost allocation is when a cost is applied or assigned to a cost object based on a certain factor. Cost object is anything for which you are trying to gather (accumulate) cost information.
Which of the following statements regarding activity-based costing (ABC) is NOT correct? a. Under ABC cost centres are replaced by cost pools b. Blanket overhead recovery rates (OAR) are replaced with cost driver rates c. ABC uses one common overhead recovery rate, such as labour hours. d. ABC tackles the problems of absorption costing by adopting a much more accurate way of charging overhead to cost units.
1. Is the spoilage a normal or an abnormal spoilage? - Normal or Abnormal 2. What is the EUP for materials? 3. How many units were transferred out? 4. What is the EUP for conversion costs?
Please answer with reason for all why the option is correct and why the other options are incorrectPlease answer correct otherwise skip it 4. Which of the following statements is true? An activity measure in activity-based costing expresses how much of an activity is carried out and it is used as the allocation base for assigning overhead costs to products and services. Activity-based management involves focusing on activities to eliminate waste, decrease processing time, and reduce defects. An activity-based costing system is generally more difficult to set up and run than a traditional cost system. Multiple Choice Statements I and II are true. Statements II and III are true. All of the statements are true. None of the statements are true.