List and explain four purposes of product costing.

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Answer 1

Textbook Question

Chapter 3, Problem 1RQ

List and explain four purposes of product costing.

Expert Solution & Answer

To determine

Enlist and explain the four purposes of the product costing.

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

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Students have asked these similar questions

Coronado Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours x (54,000+10,200)]. Estimated annual manufacturing overhead is $1,566,090. Thus, the predetermined overhead rate is $16.26 or ($1,566,090 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related…

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Answer 2

Textbook Question

Chapter 3, Problem 1RQ

List and explain four purposes of product costing.

Expert Solution & Answer

To determine

Enlist and explain the four purposes of the product costing.

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

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Answer 3

Textbook Question

Chapter 3, Problem 1RQ

List and explain four purposes of product costing.

Expert Solution & Answer

To determine

Enlist and explain the four purposes of the product costing.

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

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Answer 4

Textbook Question

Chapter 3, Problem 1RQ

List and explain four purposes of product costing.

Expert Solution & Answer

To determine

Enlist and explain the four purposes of the product costing.

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Enlist and explain the four purposes of the product costing.

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

Answer 8

Expert Solution & Answer

To determine

Enlist and explain the four purposes of the product costing.

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Enlist and explain the four purposes of the product costing.

Answer 12

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

Answer 13

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List and explain four purposes of product costing.

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