Required:Compute for the total cost transferred to the next department using average costing. *Compute for the unit cost transferred to the next department using FIFO. *Compute for the total cost accounted for using FIFO. ATOZ company's product is manufactured in two departments. Units are inspected at the end of theproduction process in the first department. Data related to the month of May are: WIP.beg (60% materials,35% labor, and 25% FOH), 1,000 units; started in process this period, 9,000 units; WIP,end (100% materials,75% labor and 50% FOH), 1,500 units. Cost data follows:Cost this MonthWIP,begP1,260MaterialsP36,240Labor77010,780FOH1,40021,725

The equivalent units are calculated on the basis of percentage of the work completed during the…

Required: Compute for the total cost transferred to the next department using average costing. * Compute for the unit cost transferred to the next department using FIFO. * Compute for the total cost accounted for using FIFO.

Required: Compute for the total cost transferred to the next department using average costing. * Compute for the unit cost transferred to the next department using FIFO. * Compute for the total cost accounted for using FIFO.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What formula do we use in accounting to determine estimated total manufacturing overhead (MOH)?…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Required information [The following information applies to the questions displayed below.] The first…

A: The equivalent units are calculated on the basis of the percentage of the work completed during the…

Q: Overheads applied are calculated by: a.OAR times the estimated cost driver activity b. Budgeted…

A: Overhead is applied on the actual cost driver at the rate based on the estimated overhead and…

Q: All the following can be used as an allocation base , EXCEPT : a All of the given answers can be…

A: Allocation base means base used to allocate costs between various jobs and products.

Q: Which of the following best defines the allocation base Select one: O a. It is selected based on the…

A: SOLUTION- ALLOCATION BASE- IT IS A BASIS UPON WHICH AN ENTITY ALLOCATES ITS OVERHEAD COSTS. AN…

Q: Assume that Fields uses the FIFO method of process costing. a. Calculate the number of units started…

A: "work in progress" is a financial and accounting term, it denotes the worth of unfinished…

Q: All the following can be used as an allocation base, EXCEPT: а. direct labor cost b. direct machine…

A: Allocation Base : Allocation base is that the instrument by that the overhead price of the…

Q: determine the function which can be used to compute annual premiums.

A: p = 150 +(x/1000*2.5) p = 150 + x/400 lets consider policy value as x = 20,000

Q: In cost accounting, what is the purpose of job costing? a. To allocate overhead costs to products b.…

A: Cost accounting is a managerial accounting process that deals with capturing, categorising, and…

Q: Fill in the blank. __________ method is a process costing system which computes equivalent units…

A: PROCESS - COSTING SYSTEM IS USED TO DETERMINE COST OF A PRODUCT OR SERVICE WHEN MASSES OF IDENTICAL…

Q: Is it true that with the use of the algebraic method, each department’s costs are set out in an…

A: Direct costs are costs that can be credited to a specific department. The company knows what…

Q: The FIFO method of process costing intermingles current costs of production with costs of beginning…

A: FIFO is a method of inventory valuation. The first in first out method mentions that the earlier…

Q: (a) a physical flow schedule, (b) an equivalent unit calculation, (c) calculation of unit costs…

A: Physical Flow schedule a. Units to account for: Resultant Table:

Q: Activity-based costing (ABC) involves steps, such as: Group of answer choices estimating annual…

A: The Activity-Based Costing (ABC) method is a management technique of assigning factory overheads…

Q: What is the purpose of a production report? (AVERAGE FIFO METHOD COSTING)

A: A dashboard that includes a production report makes it easier to monitor the most crucial KPIs from…

Q: (a) Under traditional product costing, compute the total unit cost of each product. Prepare a simple…

A: ABC is the activity based costing method. Under ABC system, the cost assigned is based on the…

Q: a. conversion costs b. cost of goods sold c. cost of production report d. cost per equivalent unit…

A: Costing refers to the process of estimating and determining the costs associated with the production…

Q: Describe the distinctive characteristic of weighted-average computations in assigning costs to units…

A: Weighted Average Method: Weighted average method is the method in which per-unit cost is calculated…

Q: 1. Indirect costs can be allocated to a cost centre if they: A. Can be identified wholly with the…

A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Explain what activity-based costing is, and a brief explanation regarding how ABC improves the…

A: In costing their are different types of overheads and also different types of methods to allocate…

Q: The four-steps of tracking product costs in a process costing system are OA. accumulate, assign,…

A: A process costing system is the system which is used by the company to account the costs of a…

Q: Required: a. Calculate the cost per equivalent unit for direct materials and conversion costs. b.…

Q: Traditional Volume-based costing allocates indirect product costs based on the volume of output,…

A: Note: Hello. Since your question has multiple parts, we will solve the first question for you. If…

Q: Write an executive summary on the following with illustrative examples and applications. A.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Required: (Use five decimal places to compute for unit cost) . What are equivalent units of…

Q: 4. 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: 2. Sunshine Company sells custom made surf boards in California. The finance manager has supplied…

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

Q: Activity based costing

A: Definition: Costing: Costing is calculated as an amount spent by the company in order to produce a…

Q: Listed below are costs found in various organizations. Required: For each cost item, Indicate…

A: Businesses can determine which expenses are stable such as unaffected by changes in production…

Q: Exercise 9-5 (Algo) Departmental expense allocations LO P2 Renata Company has four departments:…

A: The process to distribution of cost to different department on appropriate basis are called…

Q: Choose the best answer choice for each question 1. In a process cost system, the amount of work in…

A: We’ll answer the first question since the exact one wasn’tspecified. Please submit a new question…

Q: Exercise 17-11 (Algo) Computing product cost per unit using plantwide method and activity-based…

A: The activity based costing is used to apply overhead cost to products on the basis of different…

Q: What is the total costs transferred from Department 2 to Department 3?

Q: Use T-accounts to showthe flow of costs in ajob-order costing system.

A: Every industry maintains different inventory accounts and every industry can use job order costing.…

Q: Activity-based-costing * a. allocates overhead to multiple activity cost pools, and it then…

A: Activity-based costing: Activity based costing is the method of costing which is used to assign…

Q: Which of the following statement about Activity Based Costing is true? a) Costs which change with…

A: In the activity level costing the indirect cost is allocated on the basis of their activity. for…

Q: The four steps necessary to complete a cost of production report in a process cost system are 1.…

A: The correct order of steps is 1.Determine the units to be assigned costs 2.Compute equivalent units…

Q: is not a step in activity-based costing? Group of answer choices identify the activities performed…

A: In activity based costing, the overhead cost is allocated on the basis of the level of activites…

Q: What formula do we use in accounting to determine estimated total manufacturing overhead (MOH)?…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Requirements: A. What is the total Equivalent production for Materials? B. What is the total…

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

Q: 5. Match the following cost pools and activities with the most appropriate cost driver. Group of…

A: Under activity based costing method, the cost is allocated to each activity based on its…

Q: Match the terms a through d with their correct definition 1 through 4. a. Standard cost card b.…

A: Definition: Costing: For determining various costs costing is used. To derive the cost of production…

Q: Beginning work in process inventory Units started this period Completed and transferred out. Ending…

A: Weighted Average Method :— Under this method, Equivalent units is calculated by adding equivalent…

Q: Similarities of Activity-Based Costing (ABC Costing) & Absorption Costing with real world examples…

A: Activity-based costing (ABC Costing) and absorption costing are two commonly used methods of cost…

Q: 2. Matching Activity with Cost Drivers For each cost pool below, identify an appropriate cost…

A: A cost driver is a factor that determines or influences the cost of an activity or process. It is a…

Question

Required:

Compute for the total cost transferred to the next department using average costing. *

Compute for the unit cost transferred to the next department using FIFO. *

Compute for the total cost accounted for using FIFO.

ATOZ company's product is manufactured in two departments. Units are inspected at the end of the
production process in the first department. Data related to the month of May are: WIP.beg (60% materials,
35% labor, and 25% FOH), 1,000 units; started in process this period, 9,000 units; WIP,end (100% materials,
75% labor and 50% FOH), 1,500 units. Cost data follows:
Cost this Month
WIP,beg
P1,260
Materials
P36,240
Labor
770
10,780
FOH
1,400
21,725

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Solution

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Compare and contrast the Absorption Costing method and the Activity Based Costing (ABC) method. 1500 words
?Which of the following is not a step involved in activity-based costing Assign costs to products by multiplying the cost driver rate by the volume of cost driver units consumed by a O .the product .Determine how to reduce the costs of making products by cutting activities .b O Identify the activities that consume resources and assign costs to those activities c O .Compute a cost rate per cost driver unit or transaction .d O
QUESTION 9 Put the following steps in an Activity-Based-Costing system in the proper order. v Calculate a predetermined overhead rate. Identify a logical cost driver as an allocation base for each cost pool. Allocate the costs to the cost object by multiplying the predetermined overhead rate by the actual amount of the cost driver used by the cost object. v Separate total overhead into cost pools.
There are four steps in the two-stage cost allocation process using ABC. Which of the following not one of those steps? Select a cost driver for each activity cost pool. O Identify and classify activities. Identify the volume-based cost driver. O Form activity cost pools and assign indirect costs to each pool.
Which of the following are steps in process costing? Question 5 options: A) Visualize the physical flow of units B) Calculate the equivalent units C) Determine the per-unit costs D) Calculate the Cost of Goods Manufactured and the Ending WIP Inventory E) All of the above
True or 2. Reasons for using standard costing include: A) Comparing projected costs against actual costs B) Planning and budgeting purposes C) Setting prices in advance D) Identifying specific areas for process improvement E) All of the above
Indicate whether the following statement is true or false, then support your view. By using a single cost pool and a single cost driver to allocate overhead, the more traditional methods of overhead assignment fully considers the influence on cost of the different activities that occur to make a product.
Describe the distinctive characteristic of weighted-average computations in assigning costs to units completed and to units in ending work in progress.
! Required information [The following information applies to the questions displayed below.] For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.20 hours of direct labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to products on the basis of direct labor-hours. Despite the growing popularity of the company's new LEC 90, profits have been declining steadily. Management is beginning to believe that there may be a problem with the company's costing system. Direct material and direct labor costs per unit are as follows: Direct materials Direct labor…
When factory overheads are added to prime cost then the result will be. a. Cost of material consumed b. Cost of sales c. Works cost d. Cost of production
Compute Unit Costs and Gross Margin Pg. 325 Please show and explain how to compute the Unit Costs and the Gross Margin in an Activity Based Costing System.
Please help me. Thankyou.