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Cost Accounting Chapter 2 - Costs - Concepts and Classification

This document discusses concepts and classifications of costs in cost accounting. It covers direct and indirect costs, variable and fixed costs, product and period costs. It also includes several problems analyzing different types of costs for manufacturing companies. The problems involve identifying, calculating, and grouping different cost elements such as direct materials, direct labor, manufacturing overhead, and administrative expenses.

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76 views

Cost Accounting Chapter 2 - Costs - Concepts and Classification

This document discusses concepts and classifications of costs in cost accounting. It covers direct and indirect costs, variable and fixed costs, product and period costs. It also includes several problems analyzing different types of costs for manufacturing companies. The problems involve identifying, calculating, and grouping different cost elements such as direct materials, direct labor, manufacturing overhead, and administrative expenses.

Uploaded by

bebe bebe
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Cost Accounting

Chapter 2 - Costs Concepts and classification


Problem 1 Problem 2
1. Direct 6. Direct 1. Manufacturing 6. Manufacturing
2. Indirect . Direct 2. !elling . Administrati"e
#. Direct $. Indirect #. Manufacturing $. !elling
%. Direct &. Direct %. !elling &. Administrati"e
'. Direct 1(.Direct '. Administrati"e 1(.!elling
Problem #
1. )ariable Product Direct
2. )ariable Product Direct
#. *i+ed Product Indirect
%. )ariable Product Direct
'. *i+ed Product Indirect
6. *i+ed Period Indirect
. *i+ed Period Indirect
$. )ariable Period Direct
&. *i+ed Product Indirect
1(.*i+ed Period Indirect
Problem % ,ug Compan-
1. *i+ed Period 6. )ariable Period
2. *i+ed In"entoriable . )ariable In"entoriable
#. )ariable In"entoriable $. *i+ed In"entoriable
%. )ariable In"entoriable &. *i+ed Period
'. *i+ed In"entoriable 1(. *i+ed In"entoriable
Problem ' .ounin Manufacturing Compan-
1. Direct materials '(/(((
Direct labor 6(/(((
Prime cost 11(/(((
2. Direct labor 6(/(((
*0 11(/((( 2 &/((( 22'(((3 %%/(((
Con"ersion costs 1(%/(((
#. Direct materials '(/(((
Direct labor 6(/(((
*actor- o"erhead %%/(((
Product costs 1'%/(((
Problem 6 Mother 4oose Compan-
1. Prime costs - %#(/(((
2. Con"ersion cost - '2'/(((
# In"entoriable cost - 1(/(((
%. 5otal period costs - #('/(((
Problem ,lanche Corporation
6 1. Direct materials used P #(.((
Direct labor 2(.((
)ariable manufacturing o"erhead 1'.((
)ariable mar7eting #.((
5otal "ariable cost per unit 6$.((
8 9o. of units produced and sold 2(/(((
5otal "ariable costs per month P 1/#6(/(((
2. *i+ed manufacturing o"erhead P 1(.((
*i+ed mar7eting costs %.((
5otal fi+ed cost per unit 1%.((
8 9o. of units produced and sold 2(/(((
5otal fi+ed costs per month P 2$(/(((
Page 2 Chapter 2
Prblem $
1. Direct materials P 6(.((
Direct labor #(.((
)ariable manufacturing o"erhead &.((
5otal "ariable manufacturing cost per unit P &&.((
6 2. 5otal "ariable manufacturing cost per unit P &&.((
)ariable mar7eting and administrati"e 6.((
5otal "ariable costs per unit 1('.((
#. 5otal "ariable manufacturing cost per unit P &&/((
*i+ed manufacturing o"erhead 1#(/(((:1/2((3 2'.((
*ull manufacturing cost per unit 12%.((
%. *ull manufacturing cost per unit 12%.((
)ariable mar7eting and administrati"e 6.((
*i+ed mar7eting and administrati"e 2(.((
*ull cost to ma7e and sell per unit 1'(.((
Problem & - Chi; Manufacturing Compan-
1. Materials put into production P &(/(((
Direct labor &'/(((
Prime costs P 1$'/(((
2. Direct labor &'.(((
*actor- o"erhead
Indirect materials 6(/(((
Indirect labor 2'/(((
0ther o"erhead cost 6(/((( 1%'/(((
5otal con"ersion costs 2%(/(((
#. Direct materials &(/(((
Direct labor &'/(((
*actor- o"erhead 1%'/(((
5otal product costs ##(/(((
%. none
Problem 1( <ohnson Corporation
1. )ariable cost per machine hour = #'/6(( 2(/(((
%/((( - 2/(((
= .'( per machine hour
2. %/((( hours 2((( hours
5otal electricit- e+pense #'/((( 2(/(((
>ess? )ariable costs
1 %/((( + .'(3 #(/(((
1 2((( + .'(3 @@@@@@ 1'/(((
*i+ed cost '/((( '/(((
#. *i+ed cost '/(((
)ariable cost 1 6/((( + .'(3 %'/(((
5otl manufacturing costs '(/(((
Problem 11 )alde; Motors Co.
1. )ariable cost per machine hour = '/%' #/&'
21( - 1%'
= 2#.($ per machine hour
2. 21( hours 1%' hours
5otal o"erhead costs '/%' #/&'
>ess? )ariable costs
1 21( + 2#.($3 %/$%
1 1%' + 2#.($3 @@@@@ #/#%
*i+ed cost 62$ 62$

Page #
Problem 12 <ustine Compan-
1 )ariable cost per hour = %/%( 2/$2(
'2( - #((
= .'( per hour
2. '2( hours #(( hours
5otal %/%( 2/$2(
>ess? )ariable cost
'2( + .'( #/&((
#(( + .'( @@@@@ 2/2'(
*i+ed cost '( '(
#. 5otal cost = P '( 2 P/'( 8
%. *i+ed cost P '(
)ariable 1 %2( hrs. + P .'(3 #/1'(
5otal maintenance cost P #/2(
5rue:*alse Auestions
1. *alse 6. 5rue 11. *alse 16. 5rue
2. *alse . *alse 12. *alse 1. *alse
#. 5rue $. 5rue 1#. 5rue 1$. 5rue
%. *alse &. *alse 1%. *alse 1&. *alse
'. *alse 1(. 5rue 1'. *alse 2(. 5rue
Multiple choice 5heor-
1. , 6. A 11. C 16. ,
2. C . D 12. A 1. ,
#. , $. D 1#. C 1$. A
%. C &. , 1%. , 1&. D
'. D 1(. C 1'. , 2(. ,
Multiple choice Problems
1. A 6. A 11. A 16. A
2. , . C 12. , 1. ,
#. C $. C 1#. , 1$. D
%. C &. A 1%. C 1&. A
'. , 1(. C 1'. , 2(. A

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