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Assignment 2

The document discusses various cost accounting concepts and methods including: 1. Backflush costing is a method that requires less record keeping than other methods and uses a single account for labor, overhead, and finished goods inventory. 2. Cost pools are accounts that accumulate similar costs. Predetermined overhead rates provide more accurate unit costs and timely cost information. 3. Under backflush accounting, finished goods are debited and work in process/raw materials are credited when products are completed.

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Sophia Marie Eredia Ferolino
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126 views7 pages

Assignment 2

The document discusses various cost accounting concepts and methods including: 1. Backflush costing is a method that requires less record keeping than other methods and uses a single account for labor, overhead, and finished goods inventory. 2. Cost pools are accounts that accumulate similar costs. Predetermined overhead rates provide more accurate unit costs and timely cost information. 3. Under backflush accounting, finished goods are debited and work in process/raw materials are credited when products are completed.

Uploaded by

Sophia Marie Eredia Ferolino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

)- All of the above would be acceptable

2.) Application rates for factory overhead best reflect anticipated fluctuations

-Normal Capacity

3.) Backflushing, or backflush costing

-requires significantly less record keeping than other methods.

4.) In a backflush accounting system, a single account is used for the ff:

-Labor and Overhead

https://quizlet.com/324741590/chapter-2-accounting-for-materials-flash-cards/

5.) It is a group of individual cost items, or an account in which variety of similar costs are accumulated.

-Cost pool

6.) Jackson manufactures products X and Y, applying overhead of the basic of labor hours X, a low-volume…

- X-undercosted, Y-Overcosted

7.) The two main advantages of using predetermined factory overhead rates are to provide more accurate unit cost
information and to:

-provide costs information on a timely basis

8.) Under a backflush accounting system, the ff. entry is made when products are completed:

- Debit Finished Goods Credit Raw and IN Process Conversion Cost

9.) Under-applied factory overhead related to a significant decrease in production should be charged to:

- WIP, FG, COGS

10.) When rework occurs because of some action taken by the customer, the cost of the rework should be

-Work in Process

11.) When spoilage occurs because of some internal failure, the unrecoverable cost should be charged to:

-Factory Overhead Control

12.)

-credits to COGS, Finished Goods Inventory, and WIP


13.) Which of the following choices correctly depicts a cost that arises from a (a)batch-level activity from a (b)plant-
activity level?

-Inspection and Property Taxes

14.) Which of the following is not true about backflush costing?

- Production costs are attached as they move through work in process

15.) Which of the ff. statements is correct?

-is a measure of activity, such as direct labor hours, machine hours…

PROBLEMS

1. 60000

2. 67500

3. 524000 524700

4. - 5. A - 1300 B - 340 C – 98

6. A - 56 B - 57.50

7. A - 13.3 B - 15.8

8. A - B - 397000 C –

9. 81000

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