What is the difference between operations costing and a process costing system? How does a company decide whether to use a job order or a process cost system? Custom Essay

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What is the difference between operations costing and a process costing system? How does a company decide whether to use a job order or a process cost system?

How does the treatment of costs differ in ABC systems as opposed to traditional cost systems? (150 Words)

Trek Company has the following production data for April: units transferred out $40,000, and ending work process 5,000 units that ate 100% complete materials and 40% complete conversion costs. If unit materials cost is $4.00 & the unit conversion cost is $7.00, determine the costs assigned to the units transferred out & the units in ending work in process.

Production costs chargeable to the finishing department in June in Cascio Company are materials $16,000, Labor $29,500, overhead $18,000. Equivalent units of production materials are materials 20,000 and conversion costs 19,000. Compute the unit costs for materials and conversion costs.

Data for Cascio Company is give in question 4. Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion cost and 100% complete as to materials. Prepare a cost reconciliation schedule.

The Sanding Department of Richards furniture company has the following production and manufacturing cost data for March 2014, the first month of operation.
Production: 9,000 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs.
Manufacturing Costs: materials $33,000; labor $24,000; overhead $36,000.
PREPARE A PRODUCTION COST REPORT

Finney Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volume-based) and an activity based costing system. Here are its results.
Traditional Costing ABC
Sales revenue $600,000 $600,000
Overhead Costs:
Product RX3 $34,000 $50,000
Product Y12 36,000 20,000
$70,000 $70,000
Explain how a difference in the overhead costs between the two systems may have occurred.

Rich Novelty Company identified the following activities in its production and support operations. Classify each of these activities as either value added or non value added.
Machine Setup
Design engineering
Storing inventory
Moving work in process
Inspecting and testing
Painting and packing

Wilmington, Inc manufactures five models of kitchen appliances at its Mesa plant. The company is installing activity based costing and his identified the following activities performed at its Mesa Plant.
Designing new models
Purchasing raw materials & parts
Storing and managing inventory
Receiving and inspecting raw materials and parts
Interviewing and hiring new personnel
Machine forming sheet steel into appliance parts
Manually assembling parts into appliances
Training all employees of the company
Insuring all tangible fixed assets
Supervising production
Maintaining and repairing machinery and equipment
Painting & packaging finished appliances
Having analyzed its Mesa plant operations for purposes of installing activity-based costing, Wilmington, INC. identified its activity cost centers. It now needs to identify relevant activity cost drivers in order to assign overhead costs to its products.

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