Identify Cost Graphs
The following cost graphs illustrate various types of cost
behavior:
For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases:
a. Total direct materials cost
b. Electricity costs of $1,000 per month plus
$0.10 per kilowatt-hour
c. Per-unit cost of straight-line depreciation
on factory equipment
d. Salary of quality control supervisor,
$20,000 per month
e. Per-unit direct labor cost
In: Accounting
Cost of Production Report: Average Cost Method
Use the average cost method with the following data:
| Work in process, January 1, 4,800 units, 90% completed | $45,696 |
| Materials added during January from Weaving Department, 90,700 units | 838,975 |
| Direct labor for January | 209,953 |
| Factory overhead for January | 140,392 |
| Goods finished during January (includes goods in process, January 1), 88,800 units | — |
| Work in process, January 31, 6,700 units, 30% completed | — |
Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January using the average cost method. If required, round your cost per equivalent unit answer to two decimal places.
| Dalton Carpet Company | ||
| Cost of Production Report-Cutting Department | ||
| For the Month Ended January 31 | ||
| Unit Information | ||
| Units charged to production: | ||
| Inventory in process, January 1 | ||
| Received from Weaving Department | ||
| Total units accounted for by the Cutting Department | ||
| Units to be assigned costs: | ||
| Whole Units | Equivalent Units of Production | |
| Transferred to finished goods in January | ||
| Inventory in process, January 31 | ||
| Total units to be assigned costs | ||
| Cost Information | ||
| Cost per equivalent unit: | ||
| Costs | ||
| Total costs for January in Cutting Department | $ | |
| Total equivalent units | ||
| Cost per equivalent unit | $ | |
| Costs assigned to production: | ||
| Inventory in process, January 1 | $ | |
| Costs incurred in January | ||
| Total costs accounted for by the Cutting Department | $ | |
| Costs allocated to completed and partially completed units: | ||
| Transferred to finished goods in January | $ | |
| Inventory in process, January 31 | ||
| Total costs assigned by the Cutting Department | $ | |
In: Accounting
In cost Accounting if Budgeted cost is less than Actual cost what it called over costed or under cost?
what is differents between current method and Activity based method
In: Accounting
Cost of Production Report: Average Cost Method
Use the average cost method with the following data:
| Work in process, December 1, 7,400 units, 10% completed | $72,002 |
| Materials added during December from Weaving Department, 139,900 units | 1,322,055 |
| Direct labor for December | 340,697 |
| Factory overhead for December | 269,348 |
| Goods finished during December (includes goods in process, December 1), 136,900 units | — |
| Work in process, December 31, 10,400 units, 70% completed | — |
Prepare a cost of production report for the Cutting Department of Tanner Carpet Company for December 2016 using the average cost method. If required, round your cost per equivalent unit answer to two decimal places.
| Tanner Carpet Company | ||
| Cost of Production Report-Cutting Department | ||
| For the Month Ended December 31, 2016 | ||
| Unit Information | ||
| Units charged to production: | ||
| Inventory in process, December 1 | ||
| Received from Weaving Department | ||
| Total units accounted for by the Cutting Department | ||
| Units to be assigned costs: | ||
| Whole Units | Equivalent Units of Production | |
| Transferred to finished goods in December | ||
| Inventory in process, December 31 | ||
| Total units to be assigned costs | ||
| Cost Information | ||
| Costs per equivalent unit: | ||
| Costs | ||
| Total costs for December in Cutting Department | $ | |
| Total equivalent units | ||
| Cost per equivalent unit | $ | |
| Costs assigned to production: | ||
| Inventory in process, December 1 | $ | |
| Costs incurred in December | ||
| Total costs accounted for by the Cutting Department | $ | |
| Costs allocated to completed and partially completed units: | ||
| Transferred to finished goods in December | $ | |
| Inventory in process, December 31 | ||
| Total costs assigned by the Cutting Department | $ | |
In: Accounting
Two primary Cost Accounting Systems are the job order cost system and the process cost system. Provide a brief description of each cost-accounting system.
In: Accounting
Cost of Production Report: Average Cost Method
Use the average cost method with the following data:
| Work in process, December 1, 6,700 units, 70% completed | $52,997 |
| Materials added during December from Weaving Department, 126,600 units | 972,288 |
| Direct labor for December | 239,818 |
| Factory overhead for December | 145,589 |
| Goods finished during December (includes goods in process, December 1), 123,900 units | — |
| Work in process, December 31, 9,400 units, 10% completed | — |
Prepare a cost of production report for the Cutting Department of Tanner Carpet Company for December 2016 using the average cost method. If required, round your cost per equivalent unit answer to two decimal places.
| Tanner Carpet Company | ||
| Cost of Production Report-Cutting Department | ||
| For the Month Ended December 31, 2016 | ||
| Unit Information | ||
| Units charged to production: | ||
| Inventory in process, December 1 | ||
| Received from Weaving Department | ||
| Total units accounted for by the Cutting Department | ||
| Units to be assigned costs: | ||
| Whole Units | Equivalent Units of Production | |
| Transferred to finished goods in December | ||
| Inventory in process, December 31 | ||
| Total units to be assigned costs | ||
| Cost Information | ||
| Costs per equivalent unit: | ||
| Costs | ||
| Total costs for December in Cutting Department | $ | |
| Total equivalent units | ||
| Cost per equivalent unit | $ | |
| Costs assigned to production: | ||
| Inventory in process, December 1 | $ | |
| Costs incurred in December | ||
| Total costs accounted for by the Cutting Department | $ | |
| Costs allocated to completed and partially completed units: | ||
| Transferred to finished goods in December | $ | |
| Inventory in process, December 31 | ||
| Total costs assigned by the Cutting Department | $ | |
In: Accounting
1. What is the Cost Principle?and Definition of Cost Principle
2. give 3 example of Cost Principle
3. Some Issues with the Cost Principle
4. Short-Term vs Long-Term Assets
In: Accounting
Cost of Production Report: Average Cost Method Use the average cost method with the following data: Work in process, December 1, 5,500 units, 20% completed $40,040 Materials added during December from Weaving Department, 103,900 units 734,573 Direct labor for December 187,974 Factory overhead for December 143,141 Goods finished during December (includes goods in process, December 1), 101,700 units — Work in process, December 31, 7,700 units, 60% completed — Prepare a cost of production report for the Cutting Department of Tanner Carpet Company for December 2016 using the average cost method. If required, round your cost per equivalent unit answer to two decimal places. Tanner Carpet Company Cost of Production Report-Cutting Department For the Month Ended December 31, 2016
In: Accounting
Question 34 (1 point)
Which of the following statements is true?
|
a |
Because prices of food (like oranges) and energy products (like gasoline) are subject to wide swings that can be temporary in nature (these prices are very volatile), the Bureau of Labor Statistics (BLS) also reports the core CPI, which is the CPI less food and energy. |
|
b |
Real income is the number of dollars |
|
c |
Nominal income is the purchasing power of your income (how many goods and services can actually be purchased with your income). Real income is the nominal income adjusted for inflation. |
|
d |
All of the above. |
|
e |
Only a) and b) |
Question 35 (1 point)
Which of the following statements is true?
|
a |
Anticipated inflation is much less harmful than unanticipated inflation. If inflation can be anticipated, people can plan their spending accordingly and reduce the negative effects of inflation in their activities. |
|
b |
Real income can fall even when there is an increase in nominal income if the inflation rate is higher than the percentual increase in nominal income. |
|
c |
Unanticipated inflation can cause a
redistribution |
|
d |
All of the above. |
|
e |
Only a) and b) |
Question 36 (1 point)
Which of the following statements is true?
|
a |
If inflation is anticipated, the effects of inflation may be less severe, since wage and pension contracts may have inflation clauses (cost-of-living adjustments, COLAs) built in, and interest rates will be high enough to cover the cost of inflation to savers and lenders. |
|
b |
Social security payments are indexed to the CPI. Social security has more than 60 million beneficiaries. |
|
c |
In the US, more than 50 million workers have their salaries indexed to some price index. |
|
d |
All of the above. |
|
e |
Only a) and b) |
In: Economics
Parent Golf produces customized golf clubs. The process is labor intensive. The speed at which a club can be built depends on the skill level of the individual worker. Management
has established a standard of 4.0 labor hours per club. The standard wage rate is $17 per
hour. During a recent month, 1,500 clubs were produced. Management was pleased that
only 5,100 labor hours were required. However total wages amounted to $122,400. How should we analyze this situation in order to determine how well Parent Golf did during
the month?
a. Calculate a flexible budget for total labor cost for the month based on the actual
production of 1,500 golf clubs Show your calculations.
b. What was the actual number of labor hours per club required during the month in question? What was the actual labor
cost per hour experienced?
c. Determine the total labor variance experienced (actual minus budget). Was it
favorable or unfavorable? How should we break down of this amount between labor
efficiency (usage) variance and labor rate (price) variance? Graph your result!
d. Assuming that the higher labor rate was due to hiring more skillful workers
who are able to work faster, how low should the actual number of hours per club be to justify the higher wages being paid? Show your calculations.
e. You hear from one of your friends that due to the unexpectedly high productivity of the new people, there were critical materials shortages during the month
that interrupted production. While it is true that 1,500 clubs were finished, there are another 500 in the factory that are 90% complete and just waiting for the final 10%
of work. How should this change your answer in 1 above? Show your calculations.
In: Accounting