Managerial Accounting, Student Value Edition (5th Edition)

5th Edition

ISBN: 9780134067179

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

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Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing …

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Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In compari…

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Textbook Question

Chapter 3, Problem 3.54BP

Prepare job cost record (Learning Objectives 2, 3, & 4)

Durable Tire manufactures tires for all-terrain vehicles. Durable Tire uses job costing and has a perpetual inventory system. On November 22, Durable Tire received an order for 100 TX tires from ATV Corporation at a price of $60 each. The job, assigned number 298, was promised for December 10. After purchasing the materials, Durable Tire began production on November 30 and incurred the following direct labor and direct materials costs in completing the order:

Chapter 3, Problem 3.54BP, Prepare job cost record (Learning Objectives 2, 3, 4) Durable Tire manufactures tires for , example 1

Chapter 3, Problem 3.54BP, Prepare job cost record (Learning Objectives 2, 3, 4) Durable Tire manufactures tires for , example 2

Durable Tire allocates manufacturing overhead to jobs on the basis of the relationship between expected overhead costs ($529,000) and expected direct labor hours (23,000). Job 298 was completed on December 3 and shipped to ATV on December 5.

Requirements

1. Prepare a job cost record for Job 298.
2. Calculate the total profit and the per-unit profit for Job 298.

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Chapter 3, Problem 3.53BP

Chapter 3, Problem 3.55BP

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Chapter 3 Solutions

Managerial Accounting, Student Value Edition (5th Edition)

Ch. 3 - (Learning Objective 1) For which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 3) The amount of manufacturing...Ch. 3 - (Learning Objective 4) Which of the following is...Ch. 3 - (Learning Objective 5) Which of the following is...Ch. 3 - (Learning Objective 5) Assuming the amount of...Ch. 3 - Prob. 8QC Ch. 3 - Prob. 9QC Ch. 3 - Prob. 10QC

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Solution Summary: The author explains how the job cost record is prepared to track all the manufacturing costs incurred in completion of a job.

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Chapter 3 Solutions