COST ACCT-W/ACCESS >C< NON-MAJORS
15th Edition
ISBN: 9781269768191
Author: Horngren
Publisher: PEARSON C
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Question
Chapter 5, Problem 5.27E
1.
To determine
The cost per pound of potato cuts.
Given information:
Raw potatoes is 1,800,000 pounds
Process potatoes is 1,600,000 pounds
Cost of direct material is $231,000
Cost of production support is $1,689,000
Number of unit processed is 1,600,000 pounds.
2.
To determine
The cost per unit of the cost driver in the case of (a) cleaning (b) cutting and (c) packaging activity areas
Given information:
Cost driver for cleaning activities is potatoes raw pound.
Cost driver for cutting activities is potatoes cut per hours.
Cost driver for packing activities is potatoes cut per packing hours.
3.
To determine
The cost per unit pound of (a) retail potatoes and (b) institutional potatoes
Given information:
Direct material cost of retail potatoes cut is $207,900 and institutional potatoes cut is $23,100.
Direct Packing cost of retail potatoes cut is $190,000 and institutional potatoes cut is $9,000.
4.
To determine
The cost difference between the simple costing system and activity based costing and the use of activity based costing for better decision making.
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Step
Amount
Category
Inventory
1. Beginning Balance, January 1
28,000
Beginning Balance
Raw Materials
2. (+) Purchases (RM Purchases)
220,000
Addition
Raw Materials
3. (-) Ending Balance
20,000
Ending Balance
Raw Materials
4. = Transferred Out (RM used)
(228,000)
Transferred Out
Raw Materials
5. (+) Direct Labor
(152,000)
Transferred Out
Direct Labor
6. (+) Fixed Overhead
300,000
Addition
Overhead
7. (+) Variable Overhead
-
Addition
Overhead
8. = Total Factory Overhead
(390,000)
Transferred Out
Overhead
9. Beginning Balance, January 1
40,000
Beginning Balance
WIP
10. (+) Additions (RM used)
228,000
Addition
WIP
11. (+) Additions (DL used)
152,000
Addition
WIP
12. (+) Additions (OH used)
390,000
Addition
WIP
13. (-) Ending Balance, December 31
55,000
Ending Balance
WIP
14. = Transferred Out (COGM)
(755,000)…
Chapter 5 Solutions
COST ACCT-W/ACCESS >C< NON-MAJORS
Ch. 5 - What is broad averaging, and what consequences can...Ch. 5 - Why should managers worry about product...Ch. 5 - What is costing system refinement? Describe three...Ch. 5 - What is an activity-based approach to designing a...Ch. 5 - Describe four levels of a cost hierarchy.Ch. 5 - Why is it important to classify costs into a cost...Ch. 5 - What are the key reasons for product cost...Ch. 5 - Prob. 5.8QCh. 5 - Department indirect-cost rates are never...Ch. 5 - Prob. 5.10Q
Ch. 5 - Prob. 5.11QCh. 5 - Prob. 5.12QCh. 5 - Activity-based costing is the wave of the present...Ch. 5 - Increasing the number of indirect-cost pools is...Ch. 5 - The controller of a retail company has just had a...Ch. 5 - Prob. 5.16ECh. 5 - ABC, cost hierarchy, service. (CMA, adapted)...Ch. 5 - Prob. 5.18ECh. 5 - Prob. 5.19ECh. 5 - Prob. 5.20ECh. 5 - Prob. 5.21ECh. 5 - Prob. 5.22ECh. 5 - Prob. 5.23ECh. 5 - Prob. 5.24ECh. 5 - Prob. 5.25ECh. 5 - Prob. 5.26ECh. 5 - Prob. 5.27ECh. 5 - Prob. 5.28ECh. 5 - Prob. 5.29ECh. 5 - Prob. 5.30PCh. 5 - Prob. 5.31PCh. 5 - Prob. 5.32PCh. 5 - Prob. 5.33PCh. 5 - Prob. 5.34PCh. 5 - Prob. 5.35PCh. 5 - Prob. 5.36PCh. 5 - Prob. 5.37PCh. 5 - Prob. 5.38PCh. 5 - Prob. 5.39PCh. 5 - Prob. 5.40PCh. 5 - Prob. 5.41PCh. 5 - Prob. 5.42P
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