Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Chapter 5, Problem 13Q
To determine
Explain the difference between disposition of units transferred out in a single department and in multiple department factories.
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Check out a sample textbook solutionStudents have asked these similar questions
Why is the use of departmental overhead allocation rates considered a refinement over the use of a single plantwide overhead allocation rate?
In a process costing system, how is the unit cost affected in a production cost report when materials are added in a department subsequent to the first department and the added materials result in additional units?
a. the first departments unit cost is increased, which necessitates an adjustment of the transferred-in unit cost
b. the first department’s unit cost is decreased, which necessitates an adjustment of the transferred-in unit cost
c. the first department’s unit cost is increased, but it does not necessitate an adjustment of the transferred-in unit cost
d. the first department’s unit cost is decreased, but it does not necessitate an adjustment of the transferred-in unit cost
Which of the following items is not a characteristic of a process cost system?
The products produced are heterogeneous in nature.
When the finished product emerges, all units have precisely the same amount of materials, labor, and
overhead.
The focus is on continually producing homogeneous products.
Once production begins, it continues until the finished product emerges.
Chapter 5 Solutions
Principles of Cost Accounting
Ch. 5 - What are the two basic systems of cost accounting,...Ch. 5 - Following is a list of manufactured products. For...Ch. 5 - Give three examples of industries and companies...Ch. 5 - What is the primary difference between the two...Ch. 5 - What is the difference between the term unit cost...Ch. 5 - How do the two cost accounting systems differ in...Ch. 5 - What is the primary objective in accumulating...Ch. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - What would be the effect on the unit cost of...
Ch. 5 - What information is reflected on a production...Ch. 5 - What are the four main sections of a cost of...Ch. 5 - Prob. 13QCh. 5 - Prob. 14QCh. 5 - In determining the costs transferred to a third...Ch. 5 - Prob. 16QCh. 5 - Prob. 17QCh. 5 - Compute the equivalent production (unit output)...Ch. 5 - During the month, a company with no...Ch. 5 - Comacho Chemical Co. recorded costs for the month...Ch. 5 - Norwood Co. had 200 units in work in process at...Ch. 5 - Using the following data, determine which figures...Ch. 5 - The records of Burris Inc. reflect the following...Ch. 5 - The records of Stone Inc. reflect the following...Ch. 5 - Argo Manufacturing Co. had 500 units, three-fifths...Ch. 5 - AAA Appliances Inc. has two production...Ch. 5 - AAA Appliances Inc. has two production...Ch. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Chavez Concrete Inc. has two production...Ch. 5 - Chavez Concrete Inc. has two production...Ch. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Geneva Products Co. produces a latex paint and...Ch. 5 - Dublin Brewing Co. uses the process cost system....Ch. 5 - Kokomo Kayak Inc. uses the process cost system....Ch. 5 - Prob. 4PCh. 5 - Sifting, the second department in a...Ch. 5 - Forming, the second department in a...Ch. 5 - Premier Products Inc. has three departments and...Ch. 5 - Premier Products Inc. has three departments and...Ch. 5 - Aero Aluminum Inc. uses a process cost system. The...Ch. 5 - Aero Aluminum Inc. uses a process cost system. The...Ch. 5 - Prob. 11PCh. 5 - Petrini Products Co. has two departments: Mixing...Ch. 5 - Tanaka Manufacturing Co. uses the process cost...Ch. 5 - Syracuse Beverages Inc. has three plants that make...
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- Which is nor needed to compute equivalent units of production? A. the percentage of completion for inventory still in process B. the number of units transferred out C. the number of units started and completed D. the material cost per unitarrow_forwardWhy does each department have its own work in process inventory?arrow_forwardThe costs transferred from a prior process to a subsequent process are a. treated as another type of materials cost for the receiving department. b. referred to as transferred-in costs (for the receiving department). c. referred to as the cost of goods transferred out (for the transferring department). d. All of these. e. None of these.arrow_forward
- What are two types of departments found in a factory? What is the function or purpose of each?arrow_forwardHow is process costing for a single manufacturing department different from a manufacturing company with multiple departments?arrow_forwardWhat adjustment must be made if materials added in a department increase the number of units being processed in that department?arrow_forward
- What are the four steps involved in determining the cost of inventory transferred from one department to the next and the cost of work in process inventory?arrow_forwardWhy should the accountant distinguish between transferred-in costs and additional direct material costs for each subsequent department in a process-costing system?arrow_forwardAppropriate base to allocate purchase department cost to different products is? A. Machine Hour B. Purchase Order C. Closing stock of Material D. Units of outputarrow_forward
- What units (whole vs equivalent) are complete with respect to materials or conversion and what units are the number of units in production during a period whether complete or not?arrow_forwardWhy is the concept of Equivalent Units central in the measurement of the performance of a divisional or departmental manager in process costing manufacturing system? Briefly discuss.arrow_forwardWhich of the following describes the term ‘cost unit’? A basis for cost classification A production or service department A unit of product or service The cost of a unit of outputarrow_forward
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