Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process. The flow of cost refers to the steps taken by costing system to assign the different types of costs to the product or process. Under the process costing system the cost flows through following steps: • Direct Material: In the first step of the cost flow, the direct material is taken out from the material inventory and used in the production. • Direct Labor: Direct labor is the labor used in the production process that is directly allocable to the product. • Manufacturing overheads : After applying prime costs (Direct material and direct labor), manufacturing overhead are applied to the product or process, Manufacturing overhead costs includes indirect material indirect labor and other indirect costs that are not directly traceable with the production. Requirement-1: To identify: The number of raw materials used to make cheese pizza and use of these material in making the pizza.

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Answer 1

Question

Chapter 23, Problem 8BTN

To determine

Concept introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

The flow of cost refers to the steps taken by costing system to assign the different types of costs to the product or process. Under the process costing system the cost flows through following steps:

• Direct Material: In the first step of the cost flow, the direct material is taken out from the material inventory and used in the production.

• Direct Labor: Direct labor is the labor used in the production process that is directly allocable to the product.

• Manufacturing overheads: After applying prime costs (Direct material and direct labor), manufacturing overhead are applied to the product or process, Manufacturing overhead costs includes indirect material indirect labor and other indirect costs that are not directly traceable with the production.

Requirement-1:

To identify: The number of raw materials used to make cheese pizza and use of these material in making the pizza.

To determine

Requirement-2:

To identify: The differences in use of raw material by a local pizza store and a national pizza chain in making the pizza

To determine

Requirement-3:

To determine: The profitable business in comparing the local pizza store with a national pizza chain

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Please provide the solution to this general accounting question using proper accounting principles.

After the year-end adjustment, what is the net realizable value of accounts receivable?

Vantage Components, Inc. determined at the beginning of the year that estimated overhead costs would be $650,000, and the estimated allocation base would be 65,000 direct labor hours. By the end of the year, actual overhead costs totaled $698,000, and actual direct labor hours worked were 68,500. What was the dollar amount of underallocated or overallocated manufacturing overhead?

Answer 2

Question

Chapter 23, Problem 8BTN

To determine

Concept introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

The flow of cost refers to the steps taken by costing system to assign the different types of costs to the product or process. Under the process costing system the cost flows through following steps:

• Direct Material: In the first step of the cost flow, the direct material is taken out from the material inventory and used in the production.

• Direct Labor: Direct labor is the labor used in the production process that is directly allocable to the product.

• Manufacturing overheads: After applying prime costs (Direct material and direct labor), manufacturing overhead are applied to the product or process, Manufacturing overhead costs includes indirect material indirect labor and other indirect costs that are not directly traceable with the production.

Requirement-1:

To identify: The number of raw materials used to make cheese pizza and use of these material in making the pizza.

To determine

Requirement-2:

To identify: The differences in use of raw material by a local pizza store and a national pizza chain in making the pizza

To determine

Requirement-3:

To determine: The profitable business in comparing the local pizza store with a national pizza chain

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 23, Problem 8BTN

To determine

Concept introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

The flow of cost refers to the steps taken by costing system to assign the different types of costs to the product or process. Under the process costing system the cost flows through following steps:

• Direct Material: In the first step of the cost flow, the direct material is taken out from the material inventory and used in the production.

• Direct Labor: Direct labor is the labor used in the production process that is directly allocable to the product.

• Manufacturing overheads: After applying prime costs (Direct material and direct labor), manufacturing overhead are applied to the product or process, Manufacturing overhead costs includes indirect material indirect labor and other indirect costs that are not directly traceable with the production.

Requirement-1:

To identify: The number of raw materials used to make cheese pizza and use of these material in making the pizza.

To determine

Requirement-2:

To identify: The differences in use of raw material by a local pizza store and a national pizza chain in making the pizza

To determine

Requirement-3:

To determine: The profitable business in comparing the local pizza store with a national pizza chain

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 23, Problem 8BTN

To determine

Concept introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

The flow of cost refers to the steps taken by costing system to assign the different types of costs to the product or process. Under the process costing system the cost flows through following steps:

• Direct Material: In the first step of the cost flow, the direct material is taken out from the material inventory and used in the production.

• Direct Labor: Direct labor is the labor used in the production process that is directly allocable to the product.

• Manufacturing overheads: After applying prime costs (Direct material and direct labor), manufacturing overhead are applied to the product or process, Manufacturing overhead costs includes indirect material indirect labor and other indirect costs that are not directly traceable with the production.

Requirement-1:

To identify: The number of raw materials used to make cheese pizza and use of these material in making the pizza.

To determine

Requirement-2:

To identify: The differences in use of raw material by a local pizza store and a national pizza chain in making the pizza

To determine

Requirement-3:

To determine: The profitable business in comparing the local pizza store with a national pizza chain

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 23, Problem 8BTN

To determine

Concept introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

The flow of cost refers to the steps taken by costing system to assign the different types of costs to the product or process. Under the process costing system the cost flows through following steps:

• Direct Material: In the first step of the cost flow, the direct material is taken out from the material inventory and used in the production.

• Direct Labor: Direct labor is the labor used in the production process that is directly allocable to the product.

• Manufacturing overheads: After applying prime costs (Direct material and direct labor), manufacturing overhead are applied to the product or process, Manufacturing overhead costs includes indirect material indirect labor and other indirect costs that are not directly traceable with the production.

Requirement-1:

To identify: The number of raw materials used to make cheese pizza and use of these material in making the pizza.

To determine

Requirement-2:

To identify: The differences in use of raw material by a local pizza store and a national pizza chain in making the pizza

To determine

Requirement-3:

To determine: The profitable business in comparing the local pizza store with a national pizza chain

Answer 6

Chapter 23, Problem 8BTN

To determine

Concept introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

The flow of cost refers to the steps taken by costing system to assign the different types of costs to the product or process. Under the process costing system the cost flows through following steps:

• Direct Material: In the first step of the cost flow, the direct material is taken out from the material inventory and used in the production.

• Direct Labor: Direct labor is the labor used in the production process that is directly allocable to the product.

• Manufacturing overheads: After applying prime costs (Direct material and direct labor), manufacturing overhead are applied to the product or process, Manufacturing overhead costs includes indirect material indirect labor and other indirect costs that are not directly traceable with the production.

Requirement-1:

To identify: The number of raw materials used to make cheese pizza and use of these material in making the pizza.

Answer 7

Chapter 23, Problem 8BTN

To determine

Concept introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

The flow of cost refers to the steps taken by costing system to assign the different types of costs to the product or process. Under the process costing system the cost flows through following steps:

• Direct Material: In the first step of the cost flow, the direct material is taken out from the material inventory and used in the production.

• Direct Labor: Direct labor is the labor used in the production process that is directly allocable to the product.

• Manufacturing overheads: After applying prime costs (Direct material and direct labor), manufacturing overhead are applied to the product or process, Manufacturing overhead costs includes indirect material indirect labor and other indirect costs that are not directly traceable with the production.

Requirement-1:

To identify: The number of raw materials used to make cheese pizza and use of these material in making the pizza.

Answer 8

To determine

Requirement-2:

To identify: The differences in use of raw material by a local pizza store and a national pizza chain in making the pizza

Answer 9

To determine

Requirement-2:

To identify: The differences in use of raw material by a local pizza store and a national pizza chain in making the pizza

Answer 10

To determine

Requirement-3:

To determine: The profitable business in comparing the local pizza store with a national pizza chain

Answer 11

To determine

Requirement-3:

To determine: The profitable business in comparing the local pizza store with a national pizza chain

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 23 - Prob. 1DQ Ch. 23 - Prob. 2DQ Ch. 23 - Prob. 3DQ Ch. 23 - Prob. 4DQ Ch. 23 - Prob. 5DQ Ch. 23 - Prob. 6DQ Ch. 23 - Prob. 7DQ Ch. 23 - Prob. 8DQ Ch. 23 - Prob. 9DQ Ch. 23 - Prob. 10DQ

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Requirement-2:

To identify: The differences in use of raw material by a local pizza store and a national pizza chain in making the pizza

Requirement-3:

To determine: The profitable business in comparing the local pizza store with a national pizza chain

Want to see the full answer?

Chapter 23 Solutions

Concept explainers

Videos

Requirement-2: To identify: The differences in use of raw material by a local pizza store and a national pizza chain in making the pizza

Requirement-3: To determine: The profitable business in comparing the local pizza store with a national pizza chain

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Chapter 23 Solutions

Requirement-2:

To identify: The differences in use of raw material by a local pizza store and a national pizza chain in making the pizza

Requirement-3:

To determine: The profitable business in comparing the local pizza store with a national pizza chain