cost ch2 - 22 1. a. b. c. d. e. f. 2. Interrelated parts:...

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2–2 1. a. Interrelated parts: Cost accounting personnel, computer, printer b. Processes: Cost assignment: direct materials, direct labor, and overhead c. Objectives: Costing out of products d. Inputs: Direct materials, direct labor, depreciation, power, and materials handling e. Outputs: Product cost report f. User actions: Submission of a bid, make-or-buy decision 2. Operational model: cost accounting system a. Inputs: Direct materials, direct labor, depreciation, power, materials handling b. Processes: Cost assignment: materials, labor, and overhead c. Output: Product cost report d. User actions: Submission of a bid, make-or-buy decision 3. The inputs consist of only production costs suggesting a functional-based product cost definition. 2–3 a. Allocation b. Direct tracing c. Allocation d. Direct tracing e. Driver tracing; potential driver—machine hours f. Direct tracing g. Driver tracing; potential driver—number of square feet occupied h. Direct tracing i. Driver tracing; potential driver—number of orders j. Direct tracing k. Allocation l. Driver tracing; potential driver—number of employees m. Direct tracing n. Allocation 2–6 1. Beginning inventory + Purchases – Ending inventory = DM used $16,000 + $275,000 – Ending inventory = $200,000
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Ending inventory = $91,000 2. Units in beginning finished goods inventory = $3,510/$5.85 = 600 Since 10,000 units were manufactured and 600 were in beginning finished goods inventory, 10,600 units were available for sale. But 8,900 units were sold, so ending finished goods inventory is 1,700. 3.
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cost ch2 - 22 1. a. b. c. d. e. f. 2. Interrelated parts:...

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