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The Cutting Department of the Rock Island Custom Cabinetry Corporation (a process costing production) had no work in process at the beginning of the period, 12,000 units were completed during the period, 1,000 units were 40% completed at the end of the period, and the following manufacturing costs were debited to the Work in Process-Cutting Department during the period:Direct materials (13,000 lbs. at $6.00/lb.) $78,000Direct Labor 105,000Factory Overhead 78,0001. Assuming all direct materials are placed in process at the beginning of production, what is the total cost of the Work in Process-Cutting Department inventory at the end of the period?a. $6,400b. $8,400c. $10,000d. $4,000e. $11,0002. Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the 12,000 units completed in the Cutting Department during the period?a. $120,000b. $186,462c. $192,000d. $78,000e. $110,000
Chester & Wayne is a regional food distribution company. Mr. Chester, CEO, has asked your assistance in preparing cash-flow information for the last three months of this year. Sele
sabonis consmetics co. purchased machinery on december 31,2011, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each dec 31. an as
1) Define Elasticity. If you have a product where elasticity is less than one, what does that mean? Is it good, bad for the firm? 2) Why will firms not shut down as soon as th
Average costing method has the following main advantages: 1.It is a realistic costing method useful to management in analyzing operating results and appraising future production
Direct Material Price Variances The two direct material price variances can be summarized given as: From our basic data first before the beginning of the discussion on
Outdoor Travel Inc. needs to estimate the cost of capital for the evaluation of capital expenditures. A typical project is financed with 25% debt-to-value ratio (i.e., D/(D+E) =
Cost Behaviour "Profitability is only around the corner." This is a general expression in the business world; you might have heard or said this yourself only. But, the reality
Ordering cost is incurred whenever the inventory is replenished. It includes costs associated with the processing and chasing of the purchase order transportation, inspec
Regression Analysis Method of Cost Estimation It includes estimating the cost function by utilizing past data or the dependent and the independent variables. Hence the cost fu
Considerations in Variance Investigation As already notice above, not all variances are investigated; this is only the material and meaningful as for cost control reasons vari
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