The first step in applying the average cost method when computing for the unit cost is to: a. Add the beginning work in process costs to the current period’s production costs. b. Divide the current period’s production costs by the equivalent units. c. Subtract the beginning work in process costs from the current period’s production costs. d. A and B

The first step in applying the average cost method when computing for the unit cost is to: a. Add the beginning work in process costs to the current period’s production costs. b. Divide the current period’s production costs by the equivalent units. c. Subtract the beginning work in process costs from the current period’s production costs. d. A and B

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 17MC: In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs...

See similar textbooks

Similar questions

In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs C. total costs D. units of production
a. Using FIFO method, what is the equivalent production in units of Materials? b.Using FIFO method, what is the equivalent-unit material cost for the period? c. Using FIFO method, what is the equivalent production in units of Conversion Costs?
true (T) or false (F) The cost per equivalent unit is computed as the total costs of a process divided by the number of equivalent units passing through that process.
Please answer the following: 1. What is cost of production report? 2. What is cost per equivalent unit? 3. What is Equivalent Unit of Production? 4. What is FIFO method? 5. what is Average cost method?
Required: 1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The first cost is completed as an example.)
• The unit cost… a. is the total conversion costs divided by the number of units produced. b. is the total product costs divided by the number of units produced. c. product plus period cost d. is the total prime costs divided by the number of units produced. e. includes period costs.
Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and Product B, which sells for $800 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows: Usage by Product A Usage by Product B Cost Design (Engineering Hours) Machining (Machine Hours) Inspection (Batches) $ 190,000 $1,800,000 $ 108 142 2,160 2,840 160,000 42 38 8 Atlanta manufactures 12,500 units of Product A and 10,200 units of Product B per month. Each unit of Product A uses $100 of direct materials and $45 of direct labor, while each unit of Product B uşes $140 of direct materials and $75 of direct labor.
Both the equivalent units schedules and the physical flow are prerequisites to calculating the a.unit cost. b.cost reconciliation. c.weighted average. d.operating costs.
2)Which of the following is the type of cost calculated with a scientific and engineering approach and before production starts at the beginning of the period? A. Semi-variable costsB. Standard costsC. Actual costsD. Variable costsE. Production costsF. Fixed costs
provide the following answers for antonios prime cost, total manufacturing cost and total period cost
a. The equivalent units of production for conversion cost in Department Y is? b. The unit cost for materials in Department X is? c. The unit cost for conversion in Department X is?
Using the weighted average method, what are the equivalent units for conversion costs?