2 Question 3 a) It would be beneficial for the company as a whole if logs were transferred to the Sawing Division at the suggested price of $61.50 per log. CM from selling externally = $75 - $40.50 - $9.50 = $25/unit $25 x 10‚000 units = $250‚000 CM from selling to Sawing division = $122-Trasnfer costs from Harvesting-Production costs = $122-40.50-9.50-35-4.5-2.5 = $30/unit $30 x 10‚000 units = $300‚000 $300‚000 - $250‚000 = $50‚000 The CM is greater by $5 per unit if selling to the
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Materials Costs Units completed 75‚000 75‚000 75‚000 Units in ending WIP 12‚000 12‚000 11‚400 Total units accounted for 87‚000 87‚000 86‚400 Cost Information Costs to account for: Direct Conversion Materials Costs Total Costs in beginning WIP $ 0 $ 0 $ 0 Costs added by department 75‚000 372‚000 447‚000 Total costs to account for $75‚000 $372‚000 $447‚000 Cost per
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4011 APRIL 7‚ 2009 CRAIG CHAPMAN Biovail Corporation: Revenue Recognition and FOB Sales Accounting Background Late on October 9‚ 2003‚ David Maris‚ an analyst at Banc of America Securities (BAS)‚ was trying to interpret the shocking events of the previous few days and finish the write-up of his first report on the Canadian pharmaceutical firm‚ Biovail Corporation. Maris didn’t like what he saw at the company‚ but he never liked writing “Sell” recommendations. In any event‚ he wanted to make
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under efficient operating conditions absorption costing all manufacturing costs are assigned to products: direct material‚ direct labour‚ variable and fixed manufacturing overhead acceptable quality level (AQL) the defect rate at which total quality costs are minimised account classification method (or account analysis) the process in which managers use their judgement to classify costs as fixed‚ variable or semivariable costs accounting rate of return (or simple rate of return‚ rate of return on assets‚
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SYLLABUS FOR MANAGEMENT ACCOUNTING – ACCT 5100/7100 PROFESSOR LINDA BAMBER Fall 2012 Date 8/14 Tue. Topic Introduction to Management Accounting and Professionalism Chapter and Reading Course Outline Syllabus eLC Student Orientation: http://elc.uga.edu/student_orientation /index.html Assignment Due Today 1) Hand in your ACCT 5100/7100 profile. 2) Form teams of four with no more than one MBA student per team (I will try to fill out teams of two or three). One team member should email
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Cost accounting deals with ascertainment ‚ allocation ‚ apportionment accounting aspect of costs.Management accounting deals with the effect and impact of costs on the business. 2. Cost accounting provides a base for management accounting whereas management accounting is derived from cost accounting and financial accounting. 3. Cost accounting does not include financial accounting ‚ tax planning and tax accounting. Management accounting includes financial and cost accounting ‚ tax accounting
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Cost Accounting: A Managerial Emphasis‚ EXHIBIT 11-1 Accounting Information and the Decision Process FIVE-STEP SEQUENCE Step 1: Gathering Information AN ILLUSTRATION The current manufacturing line uses 20 employees‚ 15 operating machines‚ and 5 handling materials‚ for a total cost of $640‚000. The rearrangement of the manufacturing assembly line is expected to eliminate materials-handling costs‚ equivalent to $160‚000. The cost of the rearrangement will be $90‚000. Historical
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Assignment: Cost Accounting Applied By Professor Bryan Womack Course Title ACC 350012VA016-1122-001 Cost Accounting February 26‚ 2012 Companies that are successful financially know what their costs are and how those costs are being spent. The company I have chosen wants to change from a general accounting system where costs are put in general categories and they currently do not have any allocation
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1-5 a. Historical costs are not useless in rapidly changing environment. Even though it does not tell us the fair market value of a certain item‚ it gives us an idea of how the price has changed as time passes. It allows us to record the depreciation and forecast the future costs. b. 1-8 2-4 A lotion bundle consists of 2 cases of 4oz‚ 4 cases of 8oz and 1 case of 12oz bottles. For each lotion bundle: Revenue=2*$36+4*$66+1*72=$408‚ Variable cost=2*$13+4*$24.5+1*27=$151 Contribution
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company can allocate the costs incurred in the production of products or services in either a direct or an indirect manner. The direct costs can be defined as being the amount materials actually cost plus any other directly linked costs‚ such as labor‚ materials‚ electricity‚ labor for employee and management‚ machine depreciation) Production materials‚ machine or assembly wages. Labor and wages – the cost of obtaining‚ training and retaining labor is a significantly high cost which must be allocated
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