To determine Unit product cost: Unit product cost is obtained by dividing the total production run cost by the number of units produced. Pre- determined overhead rate: Pre- determined over head rate is the indirect cost obtained in a specific period of time by dividing the manufacturing cost and the cost drivers. Determine the figures in the question for Java Source, Inc. (JSI) Explanation Formula used: Unit cost = Direct Material per unit + Direct Labour Cost per unit + Manufacturing Overhead per unit (or) Cost per unit = Total manufacturing cost Number of products produced Calculation: Particulars Amount 1 Manufacturing overhead cost $22,00,000.00 2 Direct Labour Hours 50,000.00 3 Pre-determined overhead rate $44.00 Particulars Kenya Dark Viet Select 1 Direct Materials $4.50 $2.90 2 Direct Labour $0.34 $0.34 3 Overhead Cost $44.00 $44.00 Total per unit cost $48.84 $47.24 Particulars Amount 1 Purchasing overhead cost $5,60,000.00 2 Purchase orders 2000 3 Cost per unit (1 divided by 2 )( 5,60,000 2000 ) $280.00 4 Material handling cost $1,93,000.00 5 Number of set ups 1000 6 Cost per unit (4 divided by 5 )( 1,93,000 1000 ) $193.00 7 Quality control cost $90,000.00 8 Number of batches 500 9 Cost per unit (7 divided by 8 )( 90,000 500 ) $180.00 10 Roasting cost $10,45,000.00 11 Roasting hours 95000 12 Cost per unit (10 divided by 11) ( 10,45,000 95000 ) $11.00 13 Blending cost $1,92,000.00 14 Blending hours 32000 15 Cost per unit (13 divided by 14 )( 1,92,000 32000 ) $6.00 16 Packaging cost $1,20,000.00 17 Packaging hours 24000 18 Cost per unit (16 divided by 17 )( 1,20,000 24000 ) $5.00 Particulars Kenya Dark Viet Select 1 Purchase orders required 4 1 2 Purchasing cost $280...

16th Edition

ISBN: 9781259995484

Author: Ray Garrison

Publisher: MCGRAW-HILL HIGHER EDUCATION

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Chapter 2.A, Problem 6C

To determine

Unit product cost: Unit product cost is obtained by dividing the total production run cost by the number of units produced.

Pre- determined overhead rate: Pre- determined over head rate is the indirect cost obtained in a specific period of time by dividing the manufacturing cost and the cost drivers.

Determine the figures in the question for Java Source, Inc. (JSI)

Expert Solution & Answer

Chapter 2 Solutions

Managerial Accounting

Ch. 2.A - EXERCISE 2A-1 Activity-Based Absorption Costing...Ch. 2.A - EXERCISE 2A-2 Activity-Based Absorption Costing as...Ch. 2.A - EXERCISE 2A-3 Activity-Based Absorption Costing as...Ch. 2.A - PROBLEM 2A-4 Activity-Based Absorption Costing as...Ch. 2.A - Prob. 5P Ch. 2.A - CASE 2A-6 Activity-Based Absorption Costing and...Ch. 2.B - EXERCISE 2B-1 Overhead Rate Based on Capacity...Ch. 2.B - EXERCISE 2B-2 Overhead Rates and Capacity Issues...Ch. 2.B - Prob. 3P Ch. 2.B - Prob. 4C

Ch. 2 - Prob. 1Q Ch. 2 - What is absorption costing?Ch. 2 - What is normal costing?Ch. 2 - How is the unit product cost of a job calculated? Ch. 2 - Explain the four-step process used to compute a...Ch. 2 - What is the purpose of the job cost sheet in a...Ch. 2 - Explain why some production costs must be assigned...Ch. 2 - Why do companies use predetermined overhead rates...Ch. 2 - What factors should be considered in selecting an...Ch. 2 - If a company fully allocates all of its overhead...Ch. 2 - Would you expect the amount of applied overhead...Ch. 2 - Prob. 12Q Ch. 2 - What is a plantwide overhead rate? Whyare multiple...Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - Prob. 3AE Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - Prob. 1F15 Ch. 2 - Prob. 2F15 Ch. 2 - Prob. 3F15 Ch. 2 - Prob. 4F15 Ch. 2 - Prob. 5F15 Ch. 2 - Prob. 6F15 Ch. 2 - Prob. 7F15 Ch. 2 - Prob. 8F15 Ch. 2 - Prob. 9F15 Ch. 2 - Prob. 10F15 Ch. 2 - Prob. 11F15 Ch. 2 - Sweeten Company had no jobs in progress at the...Ch. 2 - Prob. 13F15 Ch. 2 - Prob. 14F15 Ch. 2 - Prob. 15F15 Ch. 2 - EXERCISE 2-1 Compute a Predetermined Overhead Rate...Ch. 2 - Prob. 2E Ch. 2 - EXERCISE 2–3 Computing Total Job Costs and Unit...Ch. 2 - EXERCISE 24 Computing Total Job Costs and Unit...Ch. 2 - EXERCISE 2-5 Computing Total Job Costs and Unit...Ch. 2 - Prob. 6E Ch. 2 - EXERCISE 2-7 Job-Order Costing; Working Backwards...Ch. 2 - EXERCISE 2-8 Applying Overhead Cost; Computing...Ch. 2 - EXERCISE 2–9 Job-Order Costing and Decision Making...Ch. 2 - Prob. 10E Ch. 2 - Prob. 11E Ch. 2 - Prob. 12E Ch. 2 - EXERCISE 2—13 Departmental Predetermined Overhead...Ch. 2 - EXERCISE 214 Job-Orders Costing for a Service...Ch. 2 - Prob. 15E Ch. 2 - PROBLEM 2—16 Plantwide Predetermined Overhead...Ch. 2 - PROBLEM 217 Plantwide and Departmental...Ch. 2 - Prob. 18P Ch. 2 - Prob. 19P Ch. 2 - Prob. 20P Ch. 2 - PROBLEM 2-21 Plant wide Versus Multiple...Ch. 2 - CASE 2-22 Plantwide versus Departmental Overhead...

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