materials cost 4. Prime costs are the combination of direct materials and direct labor costs‚ while conversion costs are the combination of direct labor costs and factory overhead costs. 5. Product costs are composed of three elements of manufacturing costs: direct materials cost‚ direct labor cost‚ and factory overhead cost. These costs are treated as assets until the product is sold. Product costs are sometimes referred to as inventoriable costs. Period costs are costs that are used in generating
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2011 (10) Direct materials used $210 Direct manufacturing labour costs 80 Indirect manufacturing costs: Plant supplies used 12 Property taxes on plant 2 Plant utilities 10 Indirect manufacturing labour costs 40 Depreciation––plant and equipment 18 Miscellaneous manufacturing overhead costs 20 102 Manufacturing costs incurred during 2011 392 Add beginning work-in-process inventory‚ 1 Jan. 2011 20 Total manufacturing costs to account for 412 Deduct ending work-in-process
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However‚ Financial Accounting is for external users‚ it is more for general purpose. It is highly condensed. It is reported by quarterly ‚and annually. It has to be written by GAAP. It more focused on being objective than relevant. 2) Whippany manufacturing wants to estimate costs for each product they produce at its Troy plant. The Troy plant produces three products at this plant‚ and runs two flexible assembly lines. Each assembly line can produce all three products. Required: a. Classify each
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Ryerson Ltd. 1 Learning Objectives 1. Discuss the role of product and service costing in manufacturing and nonmanufacturing firms. 2. Diagram and explain the flow of costs through the manufacturing accounts used in product costing. 3. Distinguish between job-order costing and process costing. © 2010 McGraw-Hill Ryerson Ltd. 2 Learning Objectives (con’d) 4. Compute a predetermined overhead rate‚ and explain its use in job-order costing for job-shop and batch-production environments
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in the manufacturing process to produce a finished product to sell. In a lumber mill the natural resource‚ the logs‚ are the direct materials used in the manufacturing process to produce the final lumber products. b. Direct Manufacturing-Labor Costs. Direct Manufacturing labor costs are the hourly labor costs associated with manufacturing a product. Maintenance‚ Quality Control‚ Management‚ and Administrative employees are not involved in direct manufacturing labor costs. c. Manufacturing Overhead
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find out different costs of company. In this assignment we going to calculate manufacturing overhead‚ product cost‚ period cost‚ cost of good manufactured and its income statement of the financial year‚ overhead rates for each activity and per unit costs and Production cost Report. ASSIGNMENT QUESTIONSU AND ANSWERS ------------------------------------------------- QUESTION 1 Answer… A. Manufacturing Overhead Accounts Name | Amount ($) | Factory utilities | 11500 | Depn. On factory
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Chapter 8 Accounting for manufacturing * Manufacturing business is more complex than retailing because it involve production as well as selling and administration * The emphasis is on the gathering of costs and the recording of expenses. Cost and decision making * Inventory valuation‚ the cost of manufacturing finished goods and goods still in production needs to be determined so that these costs can be used in preparing the income statement and balance sheet. * Profit determination
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variety of video games on a television set. The units are entirely assembled in one production department. All manufacturing costs are incurred at a uniform rate throughout the production process. The following information is available for the month ended March: |Beginning inventory of Work in Process | |$154‚000 | |Manufacturing costs incurred during March: | | | | |
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MEMORANDUM TO: FROM: SUBJECT: DATE: RICHARD SULLIVAN 76220136 WRISTON MANUFACTURING CORPORATION 3RD FEBRUARY‚ 2014 Overview Wriston Manufacturing Corporation (WMC)‚ a multi-billion dollar corporation with products targeted at North American transportation industry‚ had seen a decline in sales over the last three years and as a result under-performing plants of Heavy Equipment Division (HED) such as Detroit and Lima were coming under increased scrutiny on their future financial viability
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accounting period‚ Warren paid $3‚000 for raw materials‚ $4‚000 for labor‚ and $2‚000 for overhead costs that were incurred to make candy. Warren started and completed 10‚000 units of candy‚ of which 7‚000 were sold. Based on this information‚ Warren would recognize which of the following amounts of expense on the income statement? a. $2‚700 b. $6‚300 c. $7‚200 d. $9‚000. 3. Bandera Manufacturing Company paid cash for wages of production workers. Which of the following choices
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