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jek_recluse [69]
3 years ago
12

Robert Wilkins has prepared the following list of statements about process cost accounting. Identify each statement as true or f

alse. 1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. 2. A process cost system is used when each finished unit is indistinguishable from another. 3. Companies that produce soft drinks, movies, and computer chips would all use process cost accounting. 4. In a process cost system, costs are tracked by individual jobs. 5. Job order costing and process costing track different manufacturing cost elements. 6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead. 7. Costs flow through the accounts in the same basic way for both job order costing and process costing. 8. In a process cost system, only one work in process account is used. 9. In a process cost system, costs are summarized in a job cost sheet. 10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the equivalent units produced during the period.
Business
1 answer:
PolarNik [594]3 years ago
7 0

1. That statement is true

The main goal of process costing is to  assign the cost of production to a group of homogeneous product rather than putting it individually. This costing process is very effective for similar products on large quantity, but very inefficient if the company produce different variety of products.

2. That statement is true

The cost of production tend to be unique for different product variation. Since we intend to apply costs to similar products that are mass-produced in a continuous fashion, using process cost accounting to products that are not  indistinguishable from another could create a huge error in predicting the total cost of production.

3.  That statement is false

Like stated above, product cost accounting is only effective for companies that produce  indistinguishable products.  Soft drinks, movies, and computer chips are products that are completely different from one another. Using product cost accounting  for these products would be inefficient.

4. That statement is false

In a process cost system, costs are tracked as a whole. For example, let's say you mass produces 708.000 bottles of root beer in a month.  (the amount is too much to be counted individually)

Rather than counting the cost to manufacture the physical bottle individually, process cost systems just use the cost of manufacturing the bottles as a whole.

5. That statement is False

When we manufacture a product, it consists of several elements that make up the whole product.

For example, when producing a bottle of beer, the cost made up of several elements such as the bottle, the fluid, the labels and the cap,

process costing only track cost for one single element. (such as the cost to produce only the bottle)

6. That statement is True

The different between the two of them only on the elements that they are tracking. Job order costing counts all elements of the product. Job order costing on the other hand only count one single element of the product.

7. That statement is true

Regardless of your choice to use either job order costing or process cost system, the materials that used for the productions are completely the same. This mean that that cost would flow through the accounts in the same basic way.

8. That statement is false

You would use several works in process account. But, you need to distinguish the cost of producing each elements of the products separately. Separating such cost would help the management teams to identify the elements that cause the most burden for the company. They need this information so they can find source of materials that can cut down the cost.

9. That statement is false

The job cost sheet consist of several different factors that influence the cost of production, such as  salaries and factory overhead. Process cost system only want to know the cost for one single element of the product, It does not need other information.

10. That statement is true

After adding up all the cost for each elements of the product, this system require you to divde it all to the total units that produced during the period. This would provide the management team with the information regarding the estimated cost of producing one single product. It would help them determining the selling price.

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The following details are provided by Western Wear Merchandisers. The company uses the periodic inventory system.
polet [3.4K]

Answer:

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Explanation:

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5 0
2 years ago
Masters Golf​ Products, Inc., spent 4 years and $ 1 comma 200 comma 000 to develop its new line of club heads to replace a line
marin [14]

Answer:

The development should be not be considered as it not a relevant cash outflow

The $254,000 sale price for existing line is a relevant cash inflow

Cash flows:

Year    0      -$$1,536,000

Years 1-13     $746,000

Explanation:

The development cost has already been incurred,it is not a relevant cash outflow since the cash flows to be considered are those would be incurred in the future in respect of the new line of club heads.

The sale price  of the existing line is a relevant inflow as it would only be received as a result of switching to the new line of club heads.

The relevant  cash  flow from year 1 to 13 is computed thus:

year 0 cash outflow would be the cost of new equipment less the sale price of existing line i.e -$1,790,000+$254,000=-$1,536,000

In years 1 to 13 ,there would cash inflow of $746,000 in each year

5 0
3 years ago
Miller Corporation issued 6000 shares of its​ $5 par value common stock in payment for attorney services billed at​ $54,000. Mil
Deffense [45]

Answer:Share premium account of $24,000

The provider of attorney services of $30,000

Explanation:

On provision of services, the Attorney services expenses account is debited with $54,000 and the attorney services provider account credited with $54,000

Furthermore a share account is opened for the provider and credited with $30,000 , the share premium is credited $24,000 and a debit transfer is made to his liability account initially credited.

The $24,000 credit to share premium represents the difference between the nominal value of the share of $5 and the market value of $9 multiply by the 30,000 shares he was paid with.

Also a memorandum will be issued to state that 6000 share has been transferred from Miller to the attorney services provider and the shares will be delited from his name and entered in the name of the services provider because the credit of shares to his account does not represents new shares issued but it's the transfer of Miller's shares to him.

4 0
3 years ago
"Uterine family" is the phrase Margery Wolf uses to describe the family a woman makes by having children though they are not off
AlekseyPX

Answer:

a. True

Explanation:

The uterine family represents the individual mother and mother children. in other way, it is you, your mother, your siblings, etc

The Uterine family implies the family description that shows the women have the children but they are not officially recorded as a members of the similar lineage

Therefore the given statement is true

3 0
3 years ago
Suppose the manager agrees to pay each employee a​ $50 bonus if they meet a certain goal. on a typical​ saturday, the​ oil-chang
Sergeeva-Olga [200]

Answer:

Incomplete question

First aspect of the question is typed below.

The shape of the distribution of the time required to get an oil change at a 20-minute oil-change facility

is unknown. However, records indicate that the mean time is 2l.2-minutes, and the standard deviation 3.5 minutes.

Explanation:

Employees bonus $50

35 oil changes between 10:00 am to 12:00pm

n = 35

10% changes

So, the z - score can be calculated using

z-score = InvNorm(0.10)

z-score = -1.28

So, given that,

Standard deviation is 3.5minutes

σ = 3.5 minutes

Mean time is 21.2 minutes

μx = 21.2 minutes

Then,

σx = σ / √n

σx = 3.5 / √35

σx = 0.5916 minutes

Then, Z score can be written as

Z = (x - μx) / σx

-1.28 =  (x - 21.2) / 0.5916

Cross multiply

-1.28 × 0.5916 = x - 21.2

-0.7573 = x - 21.2

x = 21.2 - 0.7573

x = 20.443 minutes

There is a 10% chance of being at or below a mean oil-change time of 20.44 minutes

5 0
3 years ago
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