Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 3.59ACT
Unwrapped or How It’s Made
Go to www.YouTube.com and search for clips from the show Unwrapped on the Food Network or How It’s Made on the Discovery Channel. Watch a clip for a product you find interesting.
Basic Discussion Questions
- 1. Describe the product that is being produced and the company that makes it.
- 2. Summarize the production process that is used in making this product.
- 3. What raw materials are used to make this product?
- 4. What indirect materials are used to make this product?
- 5. Describe the jobs of the workers who would be considered “direct labor” in the making of this product.
- 6. Describe the jobs of the workers who would be considered “indirect labor” in the making of this product.
- 7. Define manufacturing
overhead . In addition to the indirect materials and indirect labor previously described, what othermanufacturing overhead costs would be incurred in this production process? Be specific and thorough. Make reasonable “guesses” if you do not know for sure. - 8. Would a
job-order costing system or aprocess costing system be used for this production process? Give specific reasons for your choice of which costing system would be most appropriate for this manufacturer.
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Students have asked these similar questions
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d
Match each of the following cost items with the value chain business function where you would expect the cost to be incurred:
Cost Item
1. Labor time to repair products under warranty
2. Radio commercials
3. Labor costs of delivering customer orders
4. Testing of competitor's product
5. Direct manufacturing labor costs
6. Development of order tracking system for online sales
7. Design cost of new product brochures
8. Hours spent designing childproof bottles
9. Training costs for representatives to staff the customer call center
10. Installation of robotics equipment in manufacturing plant
Business Function
Chapter 3 Solutions
Managerial Accounting (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. 8QCCh. 3 - Prob. 9QCCh. 3 - Prob. 10QC
Ch. 3 - Identify product costs, period costs, and product...Ch. 3 - Decide on product costing system (Learning...Ch. 3 - Determine the flow of costs between inventory...Ch. 3 - Understanding key document terms in a job cost...Ch. 3 - Compute a professional billing rate (Learning...Ch. 3 - Prob. 3.6SECh. 3 - Continuation of S3-6: compute total allocated...Ch. 3 - Continuation of S3-7: determine over- or under...Ch. 3 - Prob. 3.9SECh. 3 - Calculate job cost and billing at appliance repair...Ch. 3 - Calculating overallocated or underallocated...Ch. 3 - Prob. 3.12SECh. 3 - Record manufacturing labor costs (Learning...Ch. 3 - Prob. 3.14SECh. 3 - Prob. 3.15SECh. 3 - Understanding key terms (Learning Objectives 1, 2,...Ch. 3 - Identify type of costing system (Learning...Ch. 3 - Prob. 3.18AECh. 3 - Determine the cost of a job and use it for pricing...Ch. 3 - Compute a predetermined overhead rate and...Ch. 3 - Prob. 3.21AECh. 3 - Prob. 3.22AECh. 3 - Determine the cost of a job (Learning Objectives...Ch. 3 - Compare bid prices under two different allocation...Ch. 3 - Analyze manufacturing overhead (Learning...Ch. 3 - Record manufacturing overhead (Learning Objectives...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze T-accounts (Learning Objectives 2, 3, 5, ...Ch. 3 - Job cost and bid price at a consulting firm...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Identify type of costing system (Learning...Ch. 3 - Understand the flow of costs in a job cost shop...Ch. 3 - Prob. 3.33BECh. 3 - Prob. 3.34BECh. 3 - Prob. 3.35BECh. 3 - Sustainability and job costing (Learning...Ch. 3 - Determine the cost of a job (Learning Objectives...Ch. 3 - Compare bid prices under two different allocation...Ch. 3 - Analyze manufacturing overhead (Learning...Ch. 3 - Record manufacturing overhead (Learning Objectives...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze T-accounts (Learning Objectives 2, 3, 5, ...Ch. 3 - Prob. 3.43BECh. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze Manufacturing Overhead (Learning...Ch. 3 - Use job costing at an advertising agency (Learning...Ch. 3 - Use job costing at a consulting firm (Learning...Ch. 3 - Prepare job cost record (Learning Objectives 2, 3,...Ch. 3 - Determine and record job costs (Learning...Ch. 3 - Determine flow of costs through accounts (Learning...Ch. 3 - Analyze Manufacturing Overhead (Learning...Ch. 3 - Use job costing at an advertising agency (Learning...Ch. 3 - Use job costing at a consulting firm (Learning...Ch. 3 - Prepare job cost record (Learning Objectives 2, 3,...Ch. 3 - Determine and record job costs (Learning...Ch. 3 - Determine flow of costs through accounts (Learning...Ch. 3 - Job costing or process costing for wedding...Ch. 3 - Discussion Questions 1. Why would it be...Ch. 3 - Unwrapped or How Its Made Go to www.YouTube.com...Ch. 3 - Ethics involved with choice of cost driver...Ch. 3 - Prob. 3.61ACTCh. 3 - Issues with cost of job (Learning Objectives 2, 3,...
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- Note: Use FIFO method in answering the requirements 1. Equivalent production for materials, labor and overhead. 2. Unit cost for materials, labor and overhead 3. Total costs of units completed and transferred 4. Total costs of units in process, endarrow_forwardChoose the most likely used costing system for the industries listed below. choose either process costing or job order costing A costing system used by a chemical manufacturer Drag answer here A costing system used by a tire manufacturer Drag answer here A costing system used by a food processing company Drag answer here A costing system used by an architectural firm Drag answer here A costing system used by a custom home builder Drag answer here A costing system used by a manufacturer of custom furniturearrow_forwardAssume that your team is going to form a company that will manufacture chocolate chip cookies. The teamis responsible for preparing a list of all product components and costs necessary to make this product.Required:Prepare a list of all product components and costs necessary to manufacture your cookies and identify eachof the product costs as direct materials, direct labor, or factory overhead. Identify each of those costs asvariable, fixed, or mixed.arrow_forward
- A process cost system would most likely be used by a company that makes motion pictures. repairs to automobiles. breakfast cereal. college graduation announcements. 2000arrow_forwardi. ii. The Organic Bread Company (OBC) makes a range of breads for sale direct to the public. The production process begins with workers weighing out ingredients on electronic scales and then placing them in a machine for mixing. A worker then manually removes the mix from the machine and shapes it into loaves by hand, after which the bread is then placed into the oven for baking. All baked loaves are then inspected by OBC's quality inspector before they are packaged up and made ready for sale. Any loaves which fail the inspection are donated to a local food bank. The standard cost card for OBC's 'Mixed Bloomer', one of its most popular loaves, is as follows: £ White flour 0.81 Wholegrain flour 0.33 0.20 Yeast Total 1.34 Budgeted production of Mixed Bloomers was 1,000 units for the quarter, although actual production was only 950 units. The total actual quantities used and their actual costs were: White flour Wholegrain flour Yeast Total 450 150 10 610 grams at £1.80 per kg grams at…arrow_forwardIn the lecture video I used Lay's Potato Chips and an imaginary company (Smith Co.) as examples to explain Process Costing. Please think about a real life manufacturing company (big or small) that would be a good fit for the Process Costing method. Explain why you feel that your company would be a good candidate for Process Costing (hint: look at the criteria). Also, describe how you believe the units of product move through the processing department(s) and how direct labor, direct material and manufacturing overhead cost are added in each department (keep in mind that direct labor and material in process costing are traced to processing departments rather than units of products). Finally, explain what allocation base you would suggest for the calculation of the predetermined overhead rate(s) in your processing departments and why. (Min. 150 words).arrow_forward
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