Question

Why some production costs must be assigned to products through an allocation process?

Why some production costs must be assigned to products through an allocation process?
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Some production costs need to be assigned to products through an allocation process as these costs are sometimes not easily traceable to a specific job or a product.For example the salary of a factory manager cannot be traced to a particular product or job as it is rather incurred as an outcome of overall production activities.Also indirect materials cannot be traced to a specific job easily,so if these costs are to be assigned to a product then they must be allocated to the product through an allocation process.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain why some production costs must be assigned to products through an allocation process?
Explain why some production costs must be assigned to products through an allocation process?
explain why some production costs must be assigned to products through an allocation process? PLEASE BE...
explain why some production costs must be assigned to products through an allocation process? PLEASE BE VERY DETAILED :)
In a joint production process, the allocation of joint (common) costs to each of the joint...
In a joint production process, the allocation of joint (common) costs to each of the joint products being produced is needed principally: To meet external reporting requirements (i.e., for financial statement preparation purposes). To determine whether the firm in question should produce at all. To assess supplier performance. To determine which products, if any, should be produced beyond the split-off point. For determining the incremental revenues associated with additional processing of each product.
When manufacturing overhead costs are assigned to production in a process cost system, they are credited...
When manufacturing overhead costs are assigned to production in a process cost system, they are credited to Select one: a. a Manufacturing Overhead account. b. none of these types of accounts. c. a Work in Process account. d. a Finished Goods Inventory account. e. Cost of Goods Sold.
Overhead allocation is the process of spreading overhead (indirect costs) back to certain jobs, products or...
Overhead allocation is the process of spreading overhead (indirect costs) back to certain jobs, products or cost centers. Find and describe an example of a company that uses at least three product lines. How would you define the overhead accounts, and what method would you choose to use to allocate these accounts back to the job, product, or cost center?
Under process costing, the manager for Process #4 (in a multi-process production operation) cannot control the...
Under process costing, the manager for Process #4 (in a multi-process production operation) cannot control the amount of Transferred-In Costs assigned to him/her from earlier processes, but it still held responsible for those costs, and they will be part of the Cost of Production Report for Process #4. A) True B) False When a job has been completed, all of the costs assigned on the job’s job cost sheet are moved to the Finished Goods Inventory account. A) True B)...
A company manufactures three products using the same production process. The costs incurred up to the...
A company manufactures three products using the same production process. The costs incurred up to the split-off point are $200,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product Number of Units Produced Selling Price at Split-Off Selling Price after...
Why are equivalent units needed to properly allocate costs between completed production and production in process?
Why are equivalent units needed to properly allocate costs between completed production and production in process?
At final inspection stage of production process, you have identified some defects in one shipment before...
At final inspection stage of production process, you have identified some defects in one shipment before delivering to the customers. Obviously the defected products will go through the repair process before can be sold. The cost that the company will incur in repairing these products is referred to as:
PT TOBA produces two types of products both TAKO and TAKI through joint production process. Both...
PT TOBA produces two types of products both TAKO and TAKI through joint production process. Both products must be further processed and then it can be sold. In April 2016 the production cost incurred consisted of a prime cost of $ 10,000, a direct labor cost of $ 4,000 and a conversion cost of $ 14,000. The production process in April produced 500 units of TAKO and 2,000 TAKI units. The cost for further processing TAKO is $ 5 per...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT