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Unformatted text preview: to determine product cost. Definitions The basic formula for process costing: Unit product cost = Total Manufacturing Cost Total Units Produced *Because we assume that all products are homogeneous we can assign the same cost to each product. Formulas Which would be the most appropriate in each situation- job-order costing or process costing? 1. A city architect 2. Chocolate chip cooking manufacturer 3. A celebrity one-of-a-kind designer 4. A custom painter 5. A salt company Problem 2-1a 1. Job-order Solution 2-1a 2. Process 3. Job-order 4. Job-order 5. Process Nadine and Jason are opening a cookie shop. It cost $200 to manufacture to produce 100 boxes of cookies. They want to know how much cost to allocate to each box of cookie when it is sold. Problem 2-1b Total cost/Total units = $200/100 units = $2 Answer: $2/box Solution 2-1b...
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This note was uploaded on 04/21/2011 for the course ACTG 211 taught by Professor Staff during the Spring '08 term at Ill. Chicago.
- Spring '08
- Managerial Accounting