Chapter 1: Managerial accounting and cost concepts Copr.Goed…
Chapter 1: Managerial accounting and cost concepts Copr.Goedl Cost of goods sold per unit is Study tip: Cost of goods sold are only product costs. An exam question can ask for the total cost of goods sold or the cost of goods sold per unit.
Read DetailsChapter 2: Job-order costing Copr.Goedl Earthcore, LLC. coll…
Chapter 2: Job-order costing Copr.Goedl Earthcore, LLC. collects manufacturing overhead data by department. They have two departments—pouring and packaging. Relevant data is below. Pouring department: $12,000 fixed overhead, variable overhead $10 per labor hour Packaging department: $11,100 fixed overhead, variable $9 per machine hour The company estimated the following hours: Pouring department: 420 labor hours and 90 machine hours Packaging department: 100 labor hours and 390 machine hours Manufacturing overhead is applied based on departmental rates. Overhead is applied based on labor hours in the pouring department and machine hours in the packaging department. Calculate the predetermined manufacturing overrate rate for the packaging department. Study tip: When overhead is applied based on departmental rates, the predetermined overhead rate for each department only considers the overhead and cost drivers incurred in the department.
Read DetailsChapter 1: Managerial accounting and cost concepts Copr.Goed…
Chapter 1: Managerial accounting and cost concepts Copr.Goedl Assume that actual production is 9,300 units. What is the total cost of goods sold? Study tip: Expressing fixed expenses as variable expenses is one of the most challenging concepts from chapter 1. The average per unit costs are based on a production level of 9,000 units. Fixed costs are fixed in total and the per unit amount changes depending on the quantity. To solve this convert fixed product costs to the total amount based on the production level of 9,000. Then use the variable costs and total fixed costs to compute the total for a production level of 9,300.
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