Financial & Managerial Accounting
Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
Question
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Chapter 17, Problem 1DQ

(a)

To determine

Cost accounting systems

It is a system which measures, record and report the product costs. In decision making process, managers use product cost for determining the prices of the product, controlling the operations of the business, and developing financial statements.

To state: the two principal types of cost accounting systems.

(a)

Expert Solution
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Explanation of Solution

The two principal types of cost accounting systems are:

  1. 1. Job order cost system
  2. 2. Process cost system.

(b)

To determine

To state: the system that provides for a separate record of each particular quantity of product that passes through the factory.

(b)

Expert Solution
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Explanation of Solution

Job order cost system provides a separate record of each particular quantity of product that passes through the factory. Each quantity that is manufactured in the business is known as job.

(c)

To determine

To state: the system that accumulates the cost for each department or process within the factory.

(c)

Expert Solution
Check Mark

Explanation of Solution

The process cost system accumulates the cost for each department or process within the factory. They are used by the companies which deal with manufacturing goods which are indistinguishable from each other and by using continuous manufacturing process.

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Students have asked these similar questions
a. Name two principal types of cost accounting systems.b. Which system provides for a separate record of each particular quantity of product that passes through the factory?c. Which system accumulates the costs for each department or process within the factory?
Which of the following are the two main types of cost accounting systems for manufacturing operations? Oa. a. job order cost and process cost systems Ob. process cost and general accounting systems Oc. process cost and replacement cost systems Od. job order and general accounting systems
Which of the following is a characteristic of a process cost accounting system? A. Material, Labor, and Overheads are accumulated by orders. B. Companies use this system if they process custom orders. C. Only Closing stock of work in process is restated in terms of completed units. D. Opening and Closing stock of work in process are related in terms of completed units.

Chapter 17 Solutions

Financial & Managerial Accounting

Ch. 17 - Issuance of materials On April 6, Almerinda...Ch. 17 - Prob. 17.1BPECh. 17 - Direct labor costs During April, Almerinda Company...Ch. 17 - Direct labor costs During August, Rothchild...Ch. 17 - Factory overhead costs During April, Almerinda...Ch. 17 - Prob. 17.3BPECh. 17 - Applying factory overhead Almerinda Company...Ch. 17 - Prob. 17.4BPECh. 17 - Job costs At the end of April, Almerinda Company...Ch. 17 - Job costs At the end of August, Rothchild Company...Ch. 17 - Prob. 17.6APECh. 17 - Prob. 17.6BPECh. 17 - Transactions in a job order cost system Five...Ch. 17 - Cost flow relationships The following information...Ch. 17 - Cost of materials issuances under the FIFO method...Ch. 17 - Entry for issuing materials Materials issued for...Ch. 17 - Entries for materials Eclectic Ergonomics Company...Ch. 17 - Prob. 17.6EXCh. 17 - Entry for factory labor costs The weekly time...Ch. 17 - Prob. 17.8EXCh. 17 - Factory overhead rates, entries, and account...Ch. 17 - Predetermined factory overhead rate Spring Street...Ch. 17 - Predetermined factory overhead rate Poehling...Ch. 17 - Entry for jobs completed; cost of unfinished jobs...Ch. 17 - Entries for factory costs and jobs completed Old...Ch. 17 - Financial statements of a manufacturing firm The...Ch. 17 - Decision making with job order costs Alvarez...Ch. 17 - Prob. 17.16EXCh. 17 - Job order cost accounting for a service company...Ch. 17 - Job order cost accounting for a service company...Ch. 17 - Entries for costs in a job order cost system...Ch. 17 - Prob. 17.2APRCh. 17 - Job order cost sheet Remnant Carpet Company sells...Ch. 17 - Analyzing manufacturing cost accounts Fire Rock...Ch. 17 - Flow of costs and income statement Ginocera Inc....Ch. 17 - Entries for costs in a job order cost system Royal...Ch. 17 - Entries and schedules for unfinished jobs and...Ch. 17 - Job order cost sheet Stretch and Trim Carpet...Ch. 17 - Analyzing manufacturing cost accounts Clapton...Ch. 17 - Prob. 17.5BPRCh. 17 - Managerial analysis The controller of the plant of...Ch. 17 - Job order decision making and rate deficiencies...Ch. 17 - Factory overhead rate Salvo Inc., a specialized...Ch. 17 - Recording manufacturing costs Todd Lay just began...Ch. 17 - Prob. 17.5CP
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