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 8Q
If some units are normally lost during the manufacturing process and the remaining good units absorb the cost, what effect does this have on the unit cost of goods finished during the period and the cost of the work in process at the end of the period?
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Students have asked these similar questions
Which of the following is an example of a cost that varies in proportion to changes in the activity base?
Depreciation on machinery
Packaging cost
Factory rent
Insurance cost
Which of the following correctly describes the term cost driver?
a.
The inflation rate which causes costs to rise
b.
The primary factor which is correlated with the amount of cost incurred to produce a product
c.
The initial purchase price of direct materials
d.
The total material, labor, and overhead cost of a completed job
This question is a true or false.
When the manufactured goods mar eventually sold the cost of the related sold goods are then transferred from work in process to finished goods.
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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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- How do the manufacturing costs incurred during a period differ from the cost of goods manufactured for a period?arrow_forwardWhy are product costs assigned to the product and period costs immediately expensed?arrow_forwardWhich is nor needed to compute equivalent units of production? A. the percentage of completion for inventory still in process B. the number of units transferred out C. the number of units started and completed D. the material cost per unitarrow_forward
- Which of the following correctly describes the term cost driver? a.The primary factor which is correlated with the amount of cost incurred to produce a product b.The total material, labor, and overhead cost of a completed job c.The inflation rate which causes costs to rise d.The initial purchase price of direct materialsarrow_forwardWhy are product costs sometimes called inventoriable costs? Describe the flow of such costs ina manufacturing company from the point of incurrence until they finally become expenses on theincome statement.arrow_forward‘Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced.’ There are some statements about the process costing: An abnormal loss occurs when the expected output exceeds actual output. The scrap value of an abnormal loss is credited to the process account. The allocated cost of an abnormal gain is credited to the process account. The inputs to a process less than the normal loss are the expected output. The normal loss in a process is allocated a cost in order to reconcile the costs of inputs and outputs. The FIFO method assumes opening WIP is the first group of units to be completed. Therefore, opening WIP is charged separately to completed production, and CPU is based on current period costs. Required: Please identify which of the above statements are false and explain the reasons.arrow_forward
- Which of the following is not an example of a cost that varies in total as the number of units produced changes? a.electricity per KWH to operate factory equipment b.straight-line depreciation on factory equipment c.wages of assembly worker d.direct materials costarrow_forwardIf the amount of "Cost of goods manufactured" during a period exceeds the amount of "Total manufacturing costs" for the period, then, ending work in process is less than the amount of the beginning work in process inventory. ending work in process is greater than the amount of the beginning work in process inventory. ending work in process is equal to the cost of goods manufactured. None of the abovearrow_forwardIn computing the current period’s manufacturing cost per equivalent unit, the FIFO method of process costing considers current period costs a. Only b. Plus cost of beginning work in process inventory c. Less cost of beginning work in process inventory d. Plus cost of ending work in process inventoryarrow_forward
- Which of the following is an example of a variable cost? a.Insurance on the production equipment b.Direct materials c.The production supervisor's salary d.Depreciation of the factory building e.None of thesearrow_forwardWhen will cost of goods sold will equal the cost of goods manufactured? when work-in-process inventories in the beginning and ending remains the same. when materials inventories in the beginning and ending remains the same. when work-in-process beginning is higher than the work-in-process ending when finished goods inventories in the beginning and ending remains the same. Group of answer choices 1 2 3 4arrow_forwardThe direct costs of materials that change with the number of units produced is an example of a fixed production cost. True or falsearrow_forward
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