vMolding numbers on left. Painting on right High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job - order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine - hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates: Department Molding Painting Direct labor - hours 38,500 55, 400 Machine - hours 89, 000 35,000 Fixed manufacturing overhead cost $ 195, 800 $ 487,520 Variable manufacturing overhead per machine - hour $ 3.20 - Variable manufacturing overhead per direct labor - hour - S5.20 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Department Molding Painting Direct labor - hours 72 131 Machine - hours 300 72 Direct materials $ 932 $ 1,280 Direct labor cost $ 720 $ 950 If the job contained 29 units, what would be the unit product cost? (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations to the nearest dollar amount. Round your final answer to 2 decimal places.) Unit product cost per unit
vMolding numbers on left. Painting on right High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job - order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine - hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates: Department Molding Painting Direct labor - hours 38,500 55, 400 Machine - hours 89, 000 35,000 Fixed manufacturing overhead cost $ 195, 800 $ 487,520 Variable manufacturing overhead per machine - hour $ 3.20 - Variable manufacturing overhead per direct labor - hour - S5.20 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Department Molding Painting Direct labor - hours 72 131 Machine - hours 300 72 Direct materials $ 932 $ 1,280 Direct labor cost $ 720 $ 950 If the job contained 29 units, what would be the unit product cost? (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations to the nearest dollar amount. Round your final answer to 2 decimal places.) Unit product cost per unit
Chapter1: Financial Statements And Business Decisions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:vMolding numbers on left. Painting on right High Desert Potteryworks makes a variety of pottery products
that it sells to retailers. The company uses a job - order costing system in which departmental predetermined
overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in
the Molding Department is based on machine - hours, and the rate in the Painting Department is based on
direct labor - hours. At the beginning of the year, the company provided the following estimates: Department
Molding Painting Direct labor - hours 38, 500 55, 400 Machine - hours 89, 000 35,000 Fixed manufacturing
overhead cost $ 195,800 $ 487, 520 Variable manufacturing overhead per machine - hour $ 3.20 - Variable
manufacturing overhead per direct labor - hour - $ 5.20 Job 205 was started on August 1 and completed on
August 10. The company's cost records show the following information concerning the job: Department
Molding Painting Direct labor - hours 72 131 Machine - hours 300 72 Direct materials $ 932 $ 1,280 Direct
labor cost $ 720 $ 950 If the job contained 29 units, what would be the unit product cost? (Round
"Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations to the nearest
dollar amount. Round your final answer to 2 decimal places.) Unit product cost per unit
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