Activity-based costing has less applicability in a process-costing environment because: the use of activity-based costing makes the computational process more difficult the products tend to be similar and thus use the resources in a similar manner cost control in process costing is achieved by controlling the cost of the various processes rather than the individual activities Both b and c are correct.
Read DetailsA disadvantage of the weighted-average method compared to the FIFO process-costing method is that: FIFO is computationally simpler FIFO provides better management information for planning and control purposes when unit cost per input prices fluctuate markedly from month to month, its per unit cost is less representative than FIFO the information it provides about changes in unit prices from one period to the next is less useful than the information provided by FIFO
Read DetailsTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 18 THROUGH 21: Hudson Dock Company manufactures boat docks on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production (so they are using WA only WA costs are evenly allocated). Data for the Assembly Department for May 20X5 are: Work in process, beginning inventory: 70 units Direct materials (100% complete) Conversion costs (25% complete) Units started during May 40 units Work in process, ending inventory: 10 units Direct materials (100% complete) Conversion costs (50% complete) Costs for May: Standard costs for Assembly: Direct materials $4,000 per unit Conversion costs $16,000 per unit Work in process, beginning inventory: Direct materials $140,000 Conversion costs $260,000 Which of the following journal entries properly records the assignment of conversion costs to work-in-process inventory and the conversion-cost variances of the Assembly Department, assuming that conversion costs are 20% higher than expected? A. Work in Process — Assembly 1,680,000 Conversion-Cost Variances 280,000 Assembly Department Conversion Cost Control 1,400,000 B. Work in Process —Assembly 1,680,000 Direct Materials Variances 280,000 Testing Department Conversion Cost Control 1,400,000 C. Work in Process — Assembly 1,400,000 Conversion-Cost Variances 280,000 Assembly Department Conversion Cost Control 1,680,000 D. Work in Process — Testing 1,400,000 Assembly Department Conversion Cost Control 1,400,000
Read DetailsIf there was no beginning work in process and no ending work in process under the weighted-average process costing method, the number of equivalent units for direct materials, if direct materials were added at the start of the process, would be: equal to the units started or transferred in equal to the units completed less than the units completed Both a and b are correct.
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