Process costs It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production. Equivalents units for production The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process. Production cost report A production cost report is a comprehensive report prepared for each department separately at the end of a particular period, which represents the physical flow and cost flow of product for the concerned department. To Determine: The equivalents units for production of direct materials and conversion costs for the month of January for Company FMC.

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Answer 1

Question

Chapter 18, Problem 18.2APR

1.

To determine

Process costs

It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.

Equivalents units for production

The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.

Production cost report

A production cost report is a comprehensive report prepared for each department separately at the end of a particular period, which represents the physical flow and cost flow of product for the concerned department.

To Determine: The equivalents units for production of direct materials and conversion costs for the month of January for Company FMC.

2.

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between June and March when, work in process inventory as on March 1 includes $5,700 of direct materials.

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General accounting

A product cost is composed of the following

The standard cost of Product ZX includes 5 hours of direct labor at $16 per hour. The predetermined overhead rate is $28 per direct labor hour. During August, the company incurred 5,300 hours of direct labor at an average rate of $15.75 per hour and $139,400 of manufacturing overhead costs. It produced 1,100 units. Compute the total overhead variance.

Answer 2

Question

Chapter 18, Problem 18.2APR

1.

To determine

Process costs

It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.

Equivalents units for production

The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.

Production cost report

A production cost report is a comprehensive report prepared for each department separately at the end of a particular period, which represents the physical flow and cost flow of product for the concerned department.

To Determine: The equivalents units for production of direct materials and conversion costs for the month of January for Company FMC.

2.

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between June and March when, work in process inventory as on March 1 includes $5,700 of direct materials.

Expert Solution & Answer

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Answer 3

Question

Chapter 18, Problem 18.2APR

1.

To determine

Process costs

It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.

Equivalents units for production

The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.

Production cost report

A production cost report is a comprehensive report prepared for each department separately at the end of a particular period, which represents the physical flow and cost flow of product for the concerned department.

To Determine: The equivalents units for production of direct materials and conversion costs for the month of January for Company FMC.

2.

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between June and March when, work in process inventory as on March 1 includes $5,700 of direct materials.

Expert Solution & Answer

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Answer 4

Question

Chapter 18, Problem 18.2APR

1.

To determine

Process costs

It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.

Equivalents units for production

The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.

Production cost report

A production cost report is a comprehensive report prepared for each department separately at the end of a particular period, which represents the physical flow and cost flow of product for the concerned department.

To Determine: The equivalents units for production of direct materials and conversion costs for the month of January for Company FMC.

2.

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between June and March when, work in process inventory as on March 1 includes $5,700 of direct materials.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 18, Problem 18.2APR

1.

To determine

Process costs

It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.

Equivalents units for production

The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.

Production cost report

A production cost report is a comprehensive report prepared for each department separately at the end of a particular period, which represents the physical flow and cost flow of product for the concerned department.

To Determine: The equivalents units for production of direct materials and conversion costs for the month of January for Company FMC.

2.

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between June and March when, work in process inventory as on March 1 includes $5,700 of direct materials.

Answer 6

Chapter 18, Problem 18.2APR

1.

To determine

Process costs

It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.

Equivalents units for production

The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.

Production cost report

A production cost report is a comprehensive report prepared for each department separately at the end of a particular period, which represents the physical flow and cost flow of product for the concerned department.

To Determine: The equivalents units for production of direct materials and conversion costs for the month of January for Company FMC.

Answer 7

Chapter 18, Problem 18.2APR

1.

To determine

Process costs

It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.

Equivalents units for production

The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.

Production cost report

A production cost report is a comprehensive report prepared for each department separately at the end of a particular period, which represents the physical flow and cost flow of product for the concerned department.

To Determine: The equivalents units for production of direct materials and conversion costs for the month of January for Company FMC.

Answer 8

2.

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between June and March when, work in process inventory as on March 1 includes $5,700 of direct materials.

Answer 9

2.

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between June and March when, work in process inventory as on March 1 includes $5,700 of direct materials.

Answer 10

Expert Solution & Answer

Answer 11

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Answer 12

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Answer 13

Ch. 18 - Which type of cost system, process or job order,...Ch. 18 - In job order cost accounting, the three elements...Ch. 18 - In a job order cost system, direct labor and...Ch. 18 - Why is the cost per equivalent unit often...Ch. 18 - What is the purpose for determining the cost per...Ch. 18 - Rameriz Company is a process manufacturer with two...Ch. 18 - Prob. 7DQ Ch. 18 - Prob. 8DQ Ch. 18 - Prob. 9DQ Ch. 18 - How docs lean manufacturing differ from the...

Solution Summary: The author calculates the equivalents units for production of direct materials and conversion costs for the month of January for Company FMC.

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Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between June and March when, work in process inventory as on March 1 includes $5,700 of direct materials.

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