14.Which of the following costs isnotrelated to a batch-related activity?
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15.For the purposes of allocating joint costs to joint products, the sales price at the point of sale, reduced by the cost tocomplete after split-off, is assumed to be equal to the: (CPA adapted)total costs.joint costs.sales price less a normal profit margin at point of sale.relative sales value at split-off.This is an estimate of the sales value at split-off.
16.Haberdashery Company has a beginning Work-in-Process Inventory of 25,000 units (40% complete). During theperiod, 110,000 units were started and the ending Work-in-Process Inventory consisted of 20,000 units (80%complete). What are the equivalent units for conversion costs using weighted-average process costing?
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17.Estimated manufacturing overhead for the year$30,000Estimated direct labor hours for the year2,000Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on JobA-101 and Job A-102 were 1,200 and 1,000, respectively. The actual manufacturing overhead was $37,000.What is the amount of the under- or overapplied manufacturing overhead?
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Horngren'S Financial And Managerial Accounting
Book edition 6th
Author(s) Tracie L. Miller-Nobles, Brenda L. Mattison
Pages 992 pages
ISBN 9780134486833
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Short Answer
Distinguishing between job order costing and process costing
Would the following companies most likely use job order costing or process costing?
f. A custom home builder
A custom home builder is most likely to use a job-order costing system.
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Step by Step Solution
Costing of the product
Costing is defined as the total expenses incurred by the company in producing the product or service. It is determined by the management of the company to decide the selling price of the product.
Custom home builders
Custom home builders work on a contract basis and manufacture the building according to the customer's demand. Hence, they use the job order costing system to determine the project's total cost.
Step 1: Job order costing system
Job order costing system is a system that take place when customers order small, unique batches of goods produced by the companies. Printing shops, caterer, etc., use the job order costing system.
Step 2: Process costing system
Process costing system are used in the manufacturing industries to determine the total production cost for each unit of products. Paint manufacturer, yacht builder, soft drink bottler, etc., use the process costing system.
Requirement 2. Classify Lawlor's costs as period costs or product costs. If the costs are product costs, further classify as direct materials, direct labor, or manufacturing overhead.
1. Shaft and handle of weed trimmer
2. Motor of weed trimmer
3. Factory labor for workers assembling weed trimmers
4. Nylon thread used by the weed trimmer (not traced to the product)
5. Glue to hold housing together
6. Plant janitorial wages
7. Depreciation on factory equipment
8. Rent on plant
9. Sales commissions
10. Administrative salaries
11. Plant utilities
12. Shipping costs to deliver finished weed trimmers to customers