Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Textbook Question
Chapter 6, Problem 5P
Green Products Inc. cans peas and uses the weighted average cost method. For the month of November, the company showed the following:
Cost data:
Each can contains 16 oz, or 1 lb, of peas.
Required:
- 1. Calculate the cost of the completed production for November.
- 2. Show the detailed cost of the ending inventory for November.
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A manufacturing company produces a product that requires two types of materials: material A and material B. The company uses the weighted-average method to calculate material costs. The following information is available for the month of February: Beginning inventory: • Material A: 200 units at Shs.5 per unit • Material B: 300 units at Shs.8 per unit Purchases during the month: • Material A: 1,000 units at Shs.6 per unit • Material B: 800 units at Shs.10 per unit Ending inventory: • Material A: 400 units • Material B: 500 units During the month, 1,200 units of the product were produced, and the total material cost was Shs.17,760. Required: What is the cost per unit for material A and material B? Show all workings.
Mark's Meals produces frozen meals, which it sells for $9 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months in business:
(Click the icon to view the data.)
Read the requirements.
Requirement 1. Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February.
February
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January
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costing
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Mark's Meals
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costing
Absorption
costing
Variable
costing
Requirement 2b. Prepare Mark's Meals' January and February income statements using variable costing.
Mark's…
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Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February.
Prepare separate monthly income statements for January and for February, using the following: a. Absorption costing b. Variable costing
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Chapter 6 Solutions
Principles of Cost Accounting
Ch. 6 - Under what conditions may the unit costs of...Ch. 6 - When is it necessary to use separate equivalent...Ch. 6 - Why is it usually reasonable to assume that labor...Ch. 6 - If materials are not put into process uniformly,...Ch. 6 - In what way do the cost of production summaries in...Ch. 6 - Why might the total number of units completed...Ch. 6 - What is the usual method of handling the cost of...Ch. 6 - If some units are normally lost during the...Ch. 6 - How is the cost of units normally lost reflected...Ch. 6 - Prob. 10Q
Ch. 6 - What adjustment must be made if materials added in...Ch. 6 - What is the difference between the unit costs are...Ch. 6 - What advantage does the FIFO cost method have over...Ch. 6 - How would you define each of the following? a....Ch. 6 - What are three methods of allocating joint costs?
Ch. 6 - Prob. 16QCh. 6 - Prob. 17QCh. 6 - Using the data given for Cases 13 below, and...Ch. 6 - Precision Inc. manufactures wristwatches on an...Ch. 6 - The following data appeared in the accounting...Ch. 6 - Conte Chemical Co. uses the weighted average cost...Ch. 6 - Assuming that all materials are added at the...Ch. 6 - Foamy Inc. manufactures shaving cream and uses the...Ch. 6 - Calculating unit costs; units lost in production...Ch. 6 - Sonoma Products Inc. manufactures a liquid product...Ch. 6 - A company manufactures a liquid product called...Ch. 6 - Using the data given for Cases 1–3 and the FIFO...Ch. 6 - Assume each of the following conditions concerning...Ch. 6 - Adirondack Bat Co. processes rough timber to...Ch. 6 - Computing joint costssales value at split-off and...Ch. 6 - LeMoyne Manufacturing Inc.’s joint cost of...Ch. 6 - Making a journal entryby-product Petrone Metals...Ch. 6 - Espana Co. makes one main product, Uno, and a...Ch. 6 - Manufacturing data for January and February in the...Ch. 6 - Manufacturing data for June and July in the...Ch. 6 - On December 1, Carmel Valley Production Inc. had a...Ch. 6 - Akron Manufacturing Co. manufactures a...Ch. 6 - Green Products Inc. cans peas and uses the...Ch. 6 - Monterrey Products Co. uses the process cost...Ch. 6 - Prob. 7PCh. 6 - Daytona Beverages Inc. uses the FIFO cost method...Ch. 6 - Clearwater Candy Co. had a cost per equivalent...Ch. 6 - Mt. Palomar Manufacturing Co. uses a process cost...Ch. 6 - Otto Inc. specializes in chicken farming. Chickens...Ch. 6 - Otto Inc. specializes in chicken farming. Chickens...Ch. 6 - Venezuela Oil Inc. transports crude oil to its...Ch. 6 - Clark Kent Inc. buys crypton for $.80 a gallon. At...
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