COSTING METHODS Costing methods for Super Bakery University of Phoenix ACC/561 December 19, 2011 Timothy W. Williams, Ph.D. Costing methods for Super Bakery Super Bakery is a virtual corporation created in 1990 by Franco Harris, developing a network of supply for “donuts and other baked goods aimed for the institutional food market” (Kimmel, et al, 2009, pg 867). According to Kimmel, et al (2009), “only the cores, strategic functions of the business are performed
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Managerial Accounting, 5th Edition (McGraw-Hill Publishing Co., 2010) Course Objective: Management accounting information system is designed to satisfy three broad objectives (1) To provide information for costing out products and services, (2) To provide information for planning, controlling, evaluation, and continuous improvement, and (3) To provide information for decision making. The purpose of the course is to learn the fundamental
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CHAPTER 4 ACTIVITY-BASED COSTING CHAPTER REVIEW UNIT COSTS 1. Functional-based and activity-based costing assigns costs to cost objects such as products and customers. Once costs are assigned to the cost object, the unit cost is calculated by dividing the total cost assigned to the units produced by the number of units produced. 2. Unit cost information is used to: ■ value inventory ■ determine cost of goods sold, which affects income ■ determine bids to give to potential
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Process Costing Similarities Between Job-Order and Process Costing • Both systems assign material, labor and overhead costs to products and they provide a mechanism for computing unit product cost. • Both systems use the same manufacturing accounts, including Manufacturing Overhead, Raw Materials, Work in Process, and Finished Goods. • The flow of costs through the manufacturing accounts is basically the same in both systems. Differences Between Job-Order and Process Costing • Process
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Cost system refinement: Activity‐based costing; Process Costing Reading: Horngren Chapter 7 (Ch 5 in 14th edition); and Ch 8 to p 276 and pp281‐283 (Ch 17 14th edition) Note: the FIFO method will not be examined in this course and nor will Hybrid (Operation) Costing , therefore you do not need to read the pages that relate to these topics. 1 Salters Pty Ltd, a specialised equipment manufacturer, uses a job order costing system. The overhead is allocated to jobs on the basis of direct labour hours
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Managerial Accounting Exam 1 1. Managerial accounting places considerable weight on: A) generally accepted accounting principles. B) the financial history of the entity. C) ensuring that all transactions are properly recorded. D) detailed segment reports about departments, products, and customers. Answer: D AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement LO: 1 Level: Easy 2.
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File 1 of 35 Problem 7 – Job Order Costing Jessica Company started operations on January 2, 20x6. The company manufactures custom products and uses a job order system. Overhead is allocated to jobs based on direct labour costs. The budgeted manufacturing overhead for 20x6 was $396,900 and the direct labour costs were budgeted at $567,000. At the end of 20x6, there were two jobs in work in process: Direct material cost Direct labour cost Job A605 $20,000 12,000 Job A608 $36,000 38,000 Actual
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very similar in nature. 2. Process cost systems are used to apply costs to a specific job, such as the manufacturing of a specialized machine. 3. A company that produces motion pictures would likely use a process cost system. 4. In a process cost system, costs are tracked through a series of connected manufacturing processes or departments, rather than by individual jobs. 5. In a process cost system, total costs are determined at the end of a month or year
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Shannon Carl ACC 310 Cost Accounting 1 Analysis of Cost Accounting Jess Stern 5/28/2012 “Cost accounting is a type of accounting process that aims to capture a company’s costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment.”( Cost Accounting, 2012). By analyzing the importance of cost accounting to the success of a firm, we will get a better understanding as to why companies use this type of accounting
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Week 1 Question 1 Welcome to our Week 1 Discussions! To get us started, let's consider the following questions. 1) Would a traditional income statement differ depending on whether the business is a service organization, merchandiser, or manufacturer? 2) Could we use managerial accounting tools to assess the profitability of an organization other than a manufacturing business, or are the topics that we are learning only related to manufacturing? 3) If we could use these concepts in service
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