The following information is available for Aquaman Corporation for the month of February: Started in Process units WIP beginning (40% complete) Normal spoilage (discrete) Abnormal spoilage WIP ending (70% complete) Completed and Transferred out 320,000 30,000 4,400 3,600 52,000 290,000 Cost Data WIP beginning cost: Materials 41,600 55,200 Conversion Current cost: Materials Conversion 480,000 1,400,000 All materials are added at the start of the process and the inspection point is a the end of the process.

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: Show, using T-accounts, how production overhead is added to Work-in-Process Inventory when standard…

A:

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: What is the most important purpose of the cost of production report? Why?

A: Production report is the report which is made by the manufacturing company which makes the goods or…

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: Provide the benefits of using absorption costing for internal reporting. Give explanation in details…

A: There are several benefits to using absorption costing for internal reporting. First, it provides a…

Q: iscuss under what condition it would be appropriate to use a process costing system

A: Solution Concept Process costing system Process costing is a system of costing where the cost of is…

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: 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: 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…

Q: Describe accounting for production activity and preparation of a process cost summary using FIFO.

A: Accounting for Production activity determines the physical flow of units, analyze equivalent units…

Q: Which of the following are steps in process costing?   Question 5 options:   A)  Visualize the…

A: Process costing is the method which is used by the entities to determine and allocate the costs of…

Q: Describe the key steps of resource assignment and cost assembly via eTakoff and Sage Estimating.

A: Sage Estimating is an ERP tool that gives you the flexibility, speed, and accuracy to generate…

Q: Prepare the journal entry to record the overhead cost applied to production.

A: Journal entry: It is prepared to record the financial and non financial transaction of the business…

Q: What are the four steps in preparing a production cost report?

A: There are typically four steps to follow while preparing the cost report of production. These are:…

Q: How does the Units-of-Production Method give accurate results?

A: Depreciation:   It is the reduction in the value of an asset due to factors like normal usage and…

Q: Explain the difference between period cost and product cost , provide one example for each type. The…

A: Period costs: The costs (especially the overheads) related to the specific period are called period…

Q: Describe the Units-of-Production Method?

A:

Q: What is the proper order of tasks in an ABC system?   a.identify the cost pools, identify the cost…

A: Under ABC costing, the overhead is applied to production one the basis of different activities being…

Q: Provide a description of how the job order costing and process costing methods are applied to…

A: Cost accounting is required for obtaining cost sheet. Cost sheet is prepared to obtain cost of a…

Q: The purpose of costing are as follows EXCEPT:   Price products Make decisions record cost Formulate…

A: The purpose of costing  1. To fix the price of the product 2.  For decision making  3.  For…

Q: Explain the calculation of equivalent units of production.

A: Equivalents units for production (EUP): Equivalents units are a measure of the work done during an…

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.