Objective 1: Describe the building-block concepts of costing systems. 1. LO 4-1 overview: The building-block concepts of a costing system are cost object, direct costs of a cost object, indirect costs of a cost object, cost pool, and cost allocation base. Costing systems should report cost numbers that reflect the way chosen cost objects, such as products or services, use the resources of the organization. 2. Study pages 98-100. 3. LO 4-1 lecture slides
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Plan, Direct and Control Product cost vs Period costs Product costs: Direct materials, Direct labor, MOH Manufacturing Costs: COGS Manufacturing Schedule * Beginning FG Inventory + Cost of Goods Manufactured – Ending FG Inventory = COGS * Cost of Good Manufactured = Beg WIP + Total Manufacturing Costs = Total Cost of WIP * COG Manufactured = Total Cost of WIP – Ending WIP * PG 13 for illustration Chapter 2 Job order costing: assigning of costs to each job or to each batch of
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manufacturing overhead consists of costs that cannot be practically traced to jobs. Therefore, if these costs are to be assigned to jobs, they must be allocated rather than traced. 3-2 The first step is to estimate the total amount of the allocation base (the denominator) that will be required for next period’s estimated level of production. The second step is to estimate the total fixed manufacturing overhead cost for the coming period and the variable manufacturing overhead cost per unit of the allocation
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Propriety Audit Definition * Propriety audit stands for verification of transactions in the best interest of public, commonly accepted and standards of conduct. The term “propriety” has been defined as “that which meets the tests of public interest, commonly accepted customs, and standards of conduct, and particularly as applicable to professional performance, requirements of government regulations and professional codes”. * Instead of too much dependence on documents, vouchers and evidence
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of an individual decision maker. 3. Alton Company produces metal belts. During the current month, the company incurred the following product costs: Raw materials $100,000 Direct labor $75,000 Electricity used in the Factory $25,000 Factory foreperson salary $3,750 Maintenance of factory machinery $2,000 Alton Company's total product costs: A. $175,000. B. $30,750. C. $205,750. D. $28,750. Particulars Amount Raw materials $ 1,00,000 Direct labor $
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report aims to describe and evaluate the financial statements in food and beverage operations, the process of cost and pricing and its specifications and to analyse the steps in purchasing process. 2.1. Demonstrate the use of financial statements in food and beverage operations Various food and beverage establishments publish their financial reports and statements like balance sheets or cash flow in the end of each tax year, simply for the aim of evaluating their progress in comparison with
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AC 315 Cost Accounting Name___________________________________ Mid‐term Exam‐ Chapters 4, 5, 6, 7, 17 & 18 MULTIPLE CHOICE. ( 2 Points Each ) Select the ONE, BEST Answer. 1) A job-cost sheet details the: 1) _______ A) irect materials purchased and paid d B) irect labor costs incurred d C) ndirect labor costs incurred i D) ctual indirect overhead costs incurred a 2) The flexible budget contains: 2) _______ A) udgeted amounts for actual output b B)
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Colin Drury, Management and Cost Accounting Boston Creamery Boston Creamery Professor John Shank, The Amos Tuck School of Business Administration Dartmouth College This case is reprinted from Cases in Cost Management, Shank, J. K. 1996, South Western Publishing Company. The case was prepared by Professor John Shank from an earlier version he wrote at Harvard Business School with the assistance of William J. Rauwerdink, Research Assistant. This case deals with the design and use of formal
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700 | | Ending Balance 1085 | | Labor Total Labor Cots 5460 | Direct Labor Cost 3460 | | Indirect Labor Cost 2000 | Ending Balance 0 | | Work-in-process Beginning Balance 5650 | | Direct Materials
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Week 2 Assignment from the textbook Nancy Schwartz ACC/400 February 1, 2016 Lee Kroll E17.15 Spear Custom Furniture uses an activity-based cost accounting system to apply overhead to production. The company maintains four overhead cost pools. The four cost pools, and their budgeted amounts for the upcoming period, are as follows: Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . $40,000 Materials handling . . . . . . .
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