Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Chapter 5, Problem 14Q
To determine
Define the term equivalent production used in the process cost system.
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Is it true that with the use of the algebraic method, each department’s costs are set out in an equation where total costs equal the sum of direct and allocated costs?
Which of the following is referred to as the second stage of cost
allocation?
O The allocation of operating department costs to goods or services produced
O The allocation of direct department costs to indirect departments
O The allocation of service department costs to production departments
O The allocation of support department costs to goods or services produced
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Why should the accountant distinguish between transferred-in costs and additional direct material costs for each subsequent department in a process-costing system?
Chapter 5 Solutions
Principles of Cost Accounting
Ch. 5 - What are the two basic systems of cost accounting,...Ch. 5 - Following is a list of manufactured products. For...Ch. 5 - Give three examples of industries and companies...Ch. 5 - What is the primary difference between the two...Ch. 5 - What is the difference between the term unit cost...Ch. 5 - How do the two cost accounting systems differ in...Ch. 5 - What is the primary objective in accumulating...Ch. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - What would be the effect on the unit cost of...
Ch. 5 - What information is reflected on a production...Ch. 5 - What are the four main sections of a cost of...Ch. 5 - Prob. 13QCh. 5 - Prob. 14QCh. 5 - In determining the costs transferred to a third...Ch. 5 - Prob. 16QCh. 5 - Prob. 17QCh. 5 - Compute the equivalent production (unit output)...Ch. 5 - During the month, a company with no...Ch. 5 - Comacho Chemical Co. recorded costs for the month...Ch. 5 - Norwood Co. had 200 units in work in process at...Ch. 5 - Using the following data, determine which figures...Ch. 5 - The records of Burris Inc. reflect the following...Ch. 5 - The records of Stone Inc. reflect the following...Ch. 5 - Argo Manufacturing Co. had 500 units, three-fifths...Ch. 5 - AAA Appliances Inc. has two production...Ch. 5 - AAA Appliances Inc. has two production...Ch. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Chavez Concrete Inc. has two production...Ch. 5 - Chavez Concrete Inc. has two production...Ch. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Geneva Products Co. produces a latex paint and...Ch. 5 - Dublin Brewing Co. uses the process cost system....Ch. 5 - Kokomo Kayak Inc. uses the process cost system....Ch. 5 - Prob. 4PCh. 5 - Sifting, the second department in a...Ch. 5 - Forming, the second department in a...Ch. 5 - Premier Products Inc. has three departments and...Ch. 5 - Premier Products Inc. has three departments and...Ch. 5 - Aero Aluminum Inc. uses a process cost system. The...Ch. 5 - Aero Aluminum Inc. uses a process cost system. The...Ch. 5 - Prob. 11PCh. 5 - Petrini Products Co. has two departments: Mixing...Ch. 5 - Tanaka Manufacturing Co. uses the process cost...Ch. 5 - Syracuse Beverages Inc. has three plants that make...
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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
- When allocating service department costs to production departments, why is the standard cost that the service department was expected to incur, rather than the actual cost that was incurred, used in the allocation?arrow_forwardWhat adjustment must be made if materials added in a department increase the number of units being processed in that department?arrow_forwarda. The total unit cost in Department Y is? b. The total cost of completed and transferred out units in Department Y is?arrow_forward
- What is the total costs transferred from Department 2 to Department 3?arrow_forwardWhy should the accountant distinguish between transferred-in costs and additional direct materials costs for each subsequent department in a process-costing system?arrow_forward1. Using weighted average method, what is the equivalent production in units of Conversion Costs? 2. Using weighted average method, how much cost is transferred to the next department?arrow_forward
- Which of the following describes the term ‘cost unit’? A basis for cost classification A production or service department A unit of product or service The cost of a unit of outputarrow_forwardA department’s conversion costs are equal to the ________ and assigned direct labor costs. Select answer from the options below A. sum of its allocated overhead costs B. difference between its materials costs C. sum of its materials costs D. difference between its allocated overhead costsarrow_forwardIn a process costing system, how is the unit cost affected in a production cost report when materials are added in a department subsequent to the first department and the added materials result in additional units? a. the first departments unit cost is increased, which necessitates an adjustment of the transferred-in unit cost b. the first department’s unit cost is decreased, which necessitates an adjustment of the transferred-in unit cost c. the first department’s unit cost is increased, but it does not necessitate an adjustment of the transferred-in unit cost d. the first department’s unit cost is decreased, but it does not necessitate an adjustment of the transferred-in unit costarrow_forward
- Is it true that under the sequential method of cost allocation, the final amount of pesos allocated to any production department is influenced by the order in which the allocation is made from the service departments?arrow_forwardUse the cost per equivalent unit to assign costs to the work completed during the period.arrow_forwardCost Accounting - Process costing The analysis of the activity in a department or cost center for a period is called a a. Quantity report b. Cost of production report c. Cost of good manufactured report d. Equivalent production reportarrow_forward
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