May 19, 2017 inal Cost AccountinE MARISA Professo Mit 1 Je border costing is use
ID: 2581868 • Letter: M
Question
May 19, 2017 inal Cost AccountinE MARISA Professo Mit 1 Je border costing is used when essentially homogeneous products are produced en contimsous basis 2-Process costing works well whenever different products pass through a series of processes receive different doses of materinls and conversion costs 3-The FIFO method relate only to done 4-Qunlity Training is an appraisal cost S-Of the four of process costing is a method in which equivalent units and unit costs work done during the current period fr costs associated with quality of conformance, prevention costs are generally most damaging to a company 6- Opportunit 7- A unit level is 8- A method y costs are costs that are incurred when one alternative is chosen over another river is consumed by a product each and every time that a unit is produced of separating a mixed cost into its fixed and variable elements by fitting a regression line that minimizes the sum of the squared errors is called the Hi low method. in the next process continuous budget standard cost that should have been incurred based on the actual activity of the 9-Paral en units must pass through one process before they can be worked on et that rolls forward one month as the current month is completed is a 11-The differe nce between the actual variable overhead cost incurred during a period and the period is a variable overhead efficiency variance rate standard by the actual output units 12-The standard quantity of materials allowed can be calculated by multiplying the unit labor 13-Equivalent production expresses all activity of the period in terms of partially completed 14-A production budget is most important for retail stores. 15-Sales budgets are prepared before production budgets 16-A favorable labor efficiency variance could result from using higher quality materials that result in fewer inspections. A favorable labor rate variance could result from lower wage workers quitting. 18-If variable manufacturing overhead is applied based on direct labor hours and there is an unfavorable direct labor efficiency variance the variable manufacturing overhead efficiency variance will be unfavorable 19-The budget that describes how many units must be produced in order to meet sales needs and ending inventory objective is the production budget. 20-The production budget is converted into dollars 21-The materials usage variance uses the standard rate of materials used. Question #1 Michael Company budgeted the following sales in units: January 30,000. February 20,000 March 40,000. Michael's policy is to have 20% of the following month's sale in inventory. On January 1, inventory equaled 7,500 units. FEBRUARY PRODUCTION IN UNITS IS.Explanation / Answer
EXPLANATION: 1 FALSE Process costing is used. 2 FALSE The doses of cost are uniform. 3 TRUE 4 FALSE It is a preventive cost. 5 FALSE External failures are the most damaging. 6 TRUE 7 TRUE 8 FALSE Method of least squares. 9 FALSE It is sequential. 10 FALSE It is a rolling budget. 11 FALSE It is VOH spending variance. 12 FALSE It is standard quantity for actual output * standard price 13 FALSE In terms of fully completed units. 14 FALSE There is no production for a retail store. 15 TRUE Unless production is a limiting factor 16 TRUE 17 FALSE It will result in unfavorable rate variance 18 TRUE 19 TRUE 20 FALSE It is stated only in units 21 TRUE QUESTION 1: January February March Sales units 30000 20000 40000 Desired ending inventory 4000 8000 Total needs 34000 28000 Beginning inventory 7500 4000 Production in units 26500 24000 February production in units = 24,000