In traditional costing system, the number of units of material, labor and overheads required to produce a single unit of product along with their respective costs was maintained in cards. This card is called as Standard Cost Card. The total cost of all the above listed items is the standard cost for one unit produced. The Standard Cost Card is used to compare standards with actual cost incurred and analyze the variances. The difference between the standard cost and actual cost of production is the variance. Computation of cost variance.

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Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem 6QS

To determine

Concept Introduction:

In traditional costing system, the number of units of material, labor and overheads required to produce a single unit of product along with their respective costs was maintained in cards. This card is called as Standard Cost Card. The total cost of all the above listed items is the standard cost for one unit produced. The Standard Cost Card is used to compare standards with actual cost incurred and analyze the variances. The difference between the standard cost and actual cost of production is the variance.

Computation of cost variance.

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The Gasson Company uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 27,000 units, The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the costs per equivalent unit for the period $4.50 for the materials and $3.60 for labor and overhead, what is the balance of the ending work in process inventory account would be: (Do not round Cost per equivalent unit) need answer

Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem 6QS

To determine

Concept Introduction:

In traditional costing system, the number of units of material, labor and overheads required to produce a single unit of product along with their respective costs was maintained in cards. This card is called as Standard Cost Card. The total cost of all the above listed items is the standard cost for one unit produced. The Standard Cost Card is used to compare standards with actual cost incurred and analyze the variances. The difference between the standard cost and actual cost of production is the variance.

Computation of cost variance.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem 6QS

To determine

Concept Introduction:

In traditional costing system, the number of units of material, labor and overheads required to produce a single unit of product along with their respective costs was maintained in cards. This card is called as Standard Cost Card. The total cost of all the above listed items is the standard cost for one unit produced. The Standard Cost Card is used to compare standards with actual cost incurred and analyze the variances. The difference between the standard cost and actual cost of production is the variance.

Computation of cost variance.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem 6QS

To determine