CHAPTER 4 JOB COSTING 4-1
Cost poola grouping of individual cost items. Cost tracingthe assigning of direct costs to the chosen cost object. Cost allocationthe assigning of indirect costs to the chosen cost object. Cost allocation basea factor that is the
CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-20 (1520 min.) 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
CHAPTER 18 SPOILAGE, REWORK, AND SCRAP 18-21 (30 min.) Weighted-average method, spoilage. 1. Solution Exhibit 18-21A calculates equivalent units of work done in the current period for direct materials and conversion costs.
SOLUTION EXHIBIT 18-21A Summariz
CHAPTER 17 PROCESS COSTING 17-16 (25 min.) Equivalent units, zero beginning inventory. 1. Direct materials cost per unit ($720,000 10,000) Conversion cost per unit ($760,000 10,000) Assembly Department cost per unit $ 72 76 $148
2a. Solution Exhibit 17-16
CHAPTER 15 ALLOCATION OF SUPPORT-DEPARTMENT COSTS, COMMON COSTS, AND REVENUES 15-16 (20 min.) Single-rate versus dual-rate methods, support department. Bases available (kilowatt hours): Rockford Practical capacity 10,000 Expected monthly usage 8,000 1a.
CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION 11-19 (30 min.) Special order, activity-based costing.
1. Award Plus' operating income under the alternatives of accepting/rejecting the special order are: Without OneWith OneTime Only Time Only Special
CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-20 1. 12-ounce bottles 4-gallon units
(30 min.) Revenues and production budget. Selling Price $0.25 1.50 Units Sold 4,800,000a 1,200,000b Total Revenues $1,200,000 1,800,000 $3,000,000
(25 min.) ABC, cost hierarchy, service. Output unit-level costs a. Direct-labor costs, $240,000 b. Equipment-related costs (rent, maintenance, energy, and so on), $400,000 These costs are output unit-level costs because they are incurred on each u
CHAPTER 21 CAPITAL BUDGETING AND COST ANALYSIS 21-21 (30 min.) Comparison of projects, no income taxes. 1. Total Present Value Plan I $ (200,000) (2,391,000) $(2,591,000) Plan II $(1,000,000) (893,000) (797,000) $(2,690,000) Plan III $ (100,000) (893,000)