Actual Costing: Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace. Normal Costing: In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company. To compute: The actual and budgeted manufacturing overhead rates.

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Answer 1

Question

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

4.

To determine

To explain: The managers of D products prefer normal costing.

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Cullen Beatty plans to start a consulting business-Cullen Consulting Services. In preparation to do this, on April 1, 20X1, he invested $56,000 in cash and $23,000 in equipment, and opened an account at Office Plus by purchasing $1,750 in office supplies which is due by the end of the month. He then signed a one-year lease agreement on an office building for $8,400, paying the full amount in advance. Prepare a Balance Sheet for Cullen Consulting Services as of April 1, 20X1, before he conducts any services. Cash Equipment Prepaid rent CULLEN CONSULTING SERVICES Balance Sheet April 1, 20X1 Assets Liabilities $ 47,600 Accounts payable 23,000 8,400 Owner's Equity $ 1,750 Cullen Beatty, Capital 77,250 Total Assets $ 79,000 Total Liabilities and Owner's Equity $ 79,000

The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,420,000, $144,000 in the common stock account, and $2,690,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of $1,620,000, $154,000 in the common stock account and $2,990,000 in the additional paid-in surplus account. The 2022 income statement showed an interest expense of $96,000 and the company paid out $149,000 in cash dividends during 2022. The firm’s net capital spending for 2022 was $1,000,000, and the firm reduced its net working capital investment by $129,000. What was the firm's 2022 operating cash flow, or OCF?

Answer 2

Question

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

4.

To determine

To explain: The managers of D products prefer normal costing.

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Answer 3

Question

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

4.

To determine

To explain: The managers of D products prefer normal costing.

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Answer 4

Question

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

4.

To determine

To explain: The managers of D products prefer normal costing.

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Answer 5

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

4.

To determine

To explain: The managers of D products prefer normal costing.

Answer 6

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

Answer 7

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

Answer 8

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

Answer 9

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

Answer 10

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

Answer 11

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

Answer 12

4.

To determine

To explain: The managers of D products prefer normal costing.

Answer 13

4.

To determine

To explain: The managers of D products prefer normal costing.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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To compute: The cost of job by (a) actual costing and by (b) normal costing.

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

To explain: The managers of D products prefer normal costing.

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