Managerial 13e Ch 02 HW

# Managerial 13e Ch 02 HW - Cost Accounting 13 edition...

This preview shows pages 1–4. Sign up to view the full content.

Cost Accounting 13 edition CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES Exercises: 17, 19, 20, 21 Problems: 28, 30, 31 Exercises: 2-19 Classification of costs, merchandising sector. Cost object: Videos sold in video section of store Cost variability: With respect to changes in the number of videos sold There may be some debate over classifications of individual items, especially with regard to cost variability. Cost Item D or I V or F A D F B I F C D V D D F E I F F I V G I F H D V 2-20 Classification of costs, manufacturing sector. Cost object: Type of car assembled (Corolla or Geo Prism) Cost variability: With respect to changes in the number of cars assembled There may be some debate over classifications of individual items, especially with regard to cost variability. Cost Item D or I V or F A D V B I F C D F D D F E D V F I V G D V H I F

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
2-22 Variable costs and fixed costs. 1. Variable cost per ton of beach sand mined Subcontractor \$ 80 per ton Government tax 50 per ton Total \$130 per ton Fixed costs per month 0 to 100 tons of capacity per day = \$150,000 101 to 200 tons of capacity per day = \$300,000 201 to 300 tons of capacity per day = \$450,000 2. The concept of relevant range is potentially relevant for both graphs. However, the question does not place restrictions on the unit variable costs. The relevant range for the total fixed costs is from 0 to 100 tons; 101 to 200 tons; 201 to 300 tons, and so on. Within these ranges, the total fixed costs do not change in total. 3. Tons Mined per Day Tons Mined per Month Fixed Unit Cost per Ton Variable Unit Cost per Ton Total Unit Cost per Ton (1) (2) = (1) × 25 (3) = FC ÷ (2) (4) (5) = (3) + (4) (a) 180 4,500 \$300,000 ÷ 4,500 = \$66.67 \$130 \$196.67 (b) 220 5,500 \$450,000 ÷ 5,500 = \$81.82 \$130 \$211.82 The unit cost for 220 tons mined per day is \$211.82, while for 180 tons it is only \$196.67. This difference is caused by the fixed cost increment from 101 to 200 tons being spread over an increment of 80 tons, while the fixed cost increment from 201 to 300 tons is spread over an increment of only 20 tons.
2-28 Inventoriable costs versus period costs. 1.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This document was uploaded on 11/03/2011 for the course ACCOUNTING 33:010:275 at Rutgers.

### Page1 / 7

Managerial 13e Ch 02 HW - Cost Accounting 13 edition...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online