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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 45
JIT MANUFACTURING AND PROCESS COSTING
Ireland Company uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes stands for flat-screen televisons. The cost of production for the month of April is given below.
During May, 20,000 stands were produced and sold.
Required:
1. Explain why process costing can be used for computing the cost of production for the stands.
2. Calculate the cost per unit for a stand.
3. Explain how activity-based costing can be used to determine the overhead assigned to the cell.
Ireland Company uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes stands for flat-screen televisons. The cost of production for the month of April is given below.
During May, 20,000 stands were produced and sold.
Required:
1. Explain why process costing can be used for computing the cost of production for the stands.
2. Calculate the cost per unit for a stand.
3. Explain how activity-based costing can be used to determine the overhead assigned to the cell.
Explanation
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Process costing can be used for calculat...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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