A production cost report Is an accounting report that describes the physical flow of units, equvalent units of production for direct materials and converslon, costs pet e nt urit ofproduction for direct materials and for conversion, and the assignment of total costs to units worked on in the perlod.True or FalseTrueFalseNext18 of 25< Prev

Solution: Process costing is the technique in which costs are accumulated over a fixed period of…

production cost report is an accounting report that describes the physical flow of units, equivalent units of production for direct materials and conversion,costs per a oduction for direct materials and for conversilon, and the assignment of total costs to units worked on in the period. True or False True False

production cost report is an accounting report that describes the physical flow of units, equivalent units of production for direct materials and conversion,costs per a oduction for direct materials and for conversilon, and the assignment of total costs to units worked on in the period. True or False True False

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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Match one or more of the following terms with each definition below:a. Direct labour e. Inventoriable product costsb. Direct materials f. Manufacturing overheadc. Indirect labour g. Period costsd. Indirect materials_____ i) Operating costs that are expensed in the period in which they are incurred_____ ii) Materials that become a physical part of a finished product and whose costs aretraceable to the finished product_____ iii) All manufacturing costs other than direct materials & direct labour_____ iv) Labour costs that are difficult to trace to specific products_____ v) Materials whose costs cannot conveniently be directly traced to particularfinished products_____ vi) Product costs included in inventory, as required by GAAP_____ vii) The compensation of employees who physically convert materials into thecompany’s products; labour costs that are directly traceable to finished products
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.
The three major components of cost of goods sold are: a. Direct labor, direct material, and profit b. Direct labor, overhead, and profit c. Direct labor, direct material, and overhead d. Direct material, indirect material, and marketing.
What information is contained in a production report? What are equivalent units and how would a company calculate them? How does the production report and equivalent units relate to unit costs?
Which of the following is NOT correct about the classifications of costs? Select one: a. On the basis of time of computation, costs are classified into historical costs and pre-determined costs. b. Costs are classified as product costs or period costs according to their behaviour with respect to physical capacity usage of the company. c. Costs are classified into direct costs and indirect costs on the basis of their identifiability with cost units or jobs or processes or cost centres. d. Costs behave differently when level of production rises or falls, and based on this, the costs are classified as fixed, variable, or mixed costs.
The equivalent units for the FIFO unit cost represent: a. work done during the current period. b. work done during the current period and the previous period. c. work done on units completed during the current period. d. work done during the previous period. e. the same thing as the equivalent units for the weighted average unit cost.
The Cost of Production Report provides info and reports on the production costs charged to that department and the costs allocated to finished goods and to work-in-process. True False
How would I start a Production Cost Report. Should I use the refined weighted average method to start or should I use this formula? Units completed / and transferred out + Equivalent units of ending work in process-Materials= Equivalent Units of Production Materials?
Use the cost per equivalent unit to assign costs to the work completed during the period.
When computing the cost per equivalent unit under the wighted-average method of process costing, the cost per equivalent unit for direct material is computed by dividing the total direct-material cost by the total equivalent units. True or False?
1. Overhead is most often applied to production on the basis ofa. direct labor hours.b. machine hours.c. raw material usage.d. number of units made.e. direct labor costs.