Fundamentals of Cost Accounting
6th Edition
ISBN: 9781260708783
Author: LANEN, William
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Textbook Question
Chapter 6, Problem 29E
Basic Product Costing
Enviro Corporation manufactures a special liquid cleaner at its Green plant. Operating data for June follow:
The Green plant produced 1,275,000 gallons in June. The plant never has any beginning or ending inventories.
Required
Compute the cost per gallon of liquid cleaner produced in June.
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Students have asked these similar questions
Sunland Co. gathered the following information on power costs and factory machine usage for the last six months:
Power Cost
Factory Machine Hours
$28,390
15,800
36,069
21,400
32,895
18,700
ITT
26,235
15,100
23,890
13,500
20,700
Month
January
February
March
April
May
June
Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers.
(a)
Your answer is correct.
What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.)
Variable power costs $
(b)
eTextbook and Media
* Your answer is incorrect.
10.500
Fixed power costs
What is the estimated fixed power cost each month?
High
1.41 per factory machine hour
20,683
$
Low
Attempts: 1 of 5 used
What is
Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that
machine hours best explain the company's utilities cost. The company's relevant range of activity varies
from a low of 600 machine hours to a high of 1,200 machine hours, with the following data being available
for the first six months of the year:
Month
Utilities
Machine Hours
January
9,600
890
February
9,260
810
March
9,850
900
April
10,260
1,010
May
10,732
1,040
June
10,050
990
The fixed utilities cost per month for Barkoff is:
Multiple Choice
$3,440.
$4,076.
$4,436.
• $4,776.
None of the answers is correct
Chapter 6 Solutions
Fundamentals of Cost Accounting
Ch. 6 - How are product costing and cost allocation...Ch. 6 - What are the three criteria for the design of cost...Ch. 6 - Why are cost flow diagrams useful in describing...Ch. 6 - What are the characteristics of the following...Ch. 6 - How are job order, process, and operation costing...Ch. 6 - Describe the predetermined overhead rate. What is...Ch. 6 - Ideally, what does an allocation base reflect...Ch. 6 - What is two-stage cost allocation?Ch. 6 - What is continuous flow processing? Give at least...Ch. 6 - What is each component of the basic cost flow...
Ch. 6 - Cost allocation is arbitrary, so there is nothing...Ch. 6 - When designing a cost system, what points should...Ch. 6 - When is the basic cost flow model used? Give an...Ch. 6 - It is your first day at a new job and you talk...Ch. 6 - Rex Santos, a cost accountant, prepares a product...Ch. 6 - Prob. 16CADQCh. 6 - Identify a particular support function in a...Ch. 6 - Prob. 18CADQCh. 6 - Cost allocation bases are ideally based on a...Ch. 6 - Prob. 20CADQCh. 6 - Why might two companies in the same industry have...Ch. 6 - Is it possible for a company to have a two-stage...Ch. 6 - Your colleague says, If a company only has one...Ch. 6 - Basic Cost Flow Model Ralphs Mini-Mart store in...Ch. 6 - Basic Cost Flow Model Assume that the following...Ch. 6 - Basic Cost Flow Model Fill in the missing items...Ch. 6 - Prob. 27ECh. 6 - Prob. 28ECh. 6 - Basic Product Costing Enviro Corporation...Ch. 6 - Basic Product Costing Saras Sodas produces a...Ch. 6 - Basic Product Costing In June, Saras Sodas...Ch. 6 - Basic Product Costing In December, Saras Sodas...Ch. 6 - Basic Product Costing Big City Bank processes the...Ch. 6 - Basic Product Costing Lukes Lubricants starts...Ch. 6 - Basic Product Costing: Ethical Issues Old Tyme...Ch. 6 - Process Costing Sanchez Company produces paints....Ch. 6 - Process Costing Graham Petroleum produces oil. On...Ch. 6 - Process Costing Joplin Corporation produces syrups...Ch. 6 - Tiger Furnishings produces two models of cabinets...Ch. 6 - Refer to the data in Exercise 6-39. Compute the...Ch. 6 - Refer to the data in Exercise 6-39. Compute the...Ch. 6 - Refer to the data in Exercise 6-39. Draw the cost...Ch. 6 - Compute the predetermined overhead rate used to...Ch. 6 - Compute the predetermined overhead rate used to...Ch. 6 - Prob. 45ECh. 6 - Prob. 46ECh. 6 - The system is referred to as a two-stage cost...Ch. 6 - Channing uses a two-stage cost allocation system,...Ch. 6 - Operations Costing Howrley-David, Inc.,...Ch. 6 - Operations Costing S. Lee Enterprises produces two...Ch. 6 - Operations Costing Organic Grounds produces two...Ch. 6 - Refer to the data in Exercise 6-39. Compute the...Ch. 6 - Refer to the data in Exercise 6-39. Compute the...Ch. 6 - Refer to the data in Exercise 6-39. The president...Ch. 6 - Donovan Parents produces soccer shorts and...Ch. 6 - Owl-Eye Radiologists (OR) does various types of...Ch. 6 - Prob. 57PCh. 6 - Compute the predetermined overhead rate used to...Ch. 6 - Operations Costing Vermont Instruments...Ch. 6 - Operation Costing DiDonato Supplies manufactures...Ch. 6 - Account Analysis, Two-Stage Allocation, and...Ch. 6 - Product Costing, Cost Estimation, and Decision...
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- Sunland Co. gathered the following information on power costs and factory machine usage for the last six months: Month January February March April May June (a) Power Cost $28,390 (b) 36,069 32,895 26,235 (c) 23,890 20,700 Your answer is correct. Variable power costs $ Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers. eTextbook and Media Your answer is correct. Factory Machine Hours What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.) Fixed power costs $ eTextbook and Media 15,800 21,400 Total power cost $ 18,700 High 15,100 13,500 What is the estimated fixed power cost each month? 10,500 1.41 5,895 per factory machine hour Low 5,895 If it is estimated that 13,800 factory machine hours will be run in July, what is the expected total power cost for July?arrow_forwardCalculating conversion costs and unit cost Spring Fresh produces premium bottled water. Spring Fresh purchases artesian waters stores the water in large tanks, and then runs the water through two processes: filtration and bottling. During February, the filtration process incurred the following costs in processing 200,000 liters: Spring Fresh had no beginning Work-in-Process Inventory in the Filtration Department in February and uses the Weighted-average method. Requirements Compute the February conversion costs in the Filtration Department. The Filtration Department completely processed 200,000 liters in February. What was the filtration cost per liter?arrow_forwardBarkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: Month Utilities Machine Hours January $8,700 800 February 8,360 720 March 8,950 810 April 9,360 920 May 9,625 950 June 9,150 900 The variable utilities cost per machine hour for Barkoff is: Select one: a. $5.00. b. $4.50. c. $0.18 d. $5.50.e. None of the answers is correct.arrow_forward
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