In Activity Based Costing, a
particular task or unit of
work with specific purpose
is known as
Cost Object
Cost Pool
Activity
Cost Driver
Answers
Explanation:
The ABC system of cost accounting is based on activities, which are considered any events, unit of work, or task with a specific goal. The coast drivided by cost driver, is used to calculate the amount of overhead and indirect costs related to a particular activity
Answer:
Explanation:
Part I: Discuss the following ABC costing system related concept briefly.
1. Activity-based costing; use of cost drivers and activities
2. Activity Based Costing for Customer Profitability
3. Activity Based Management
Part II: C o m p u t e t he following cost determination question.
1. The following data pertain to the coating department of ABC Ceramics Company for the month ended August 31, 2009. Work in process, August1 ( units) A
Units started during august(units) B
Total units to account for C
Units completed and transferred out 70,000
WIP, August31 (units) 50,000
EU of Work done in august- Direct material 80,000 EU of Work done in august-conversion cost D
WIP,August1 ,Direct material cost Br.304,000
WIP,August1 ,conversion cost E
WIP, August1 -total cost F Cost incurred during August-Direct material Br.61 2,000
Cost incurred during August-conversion cost G
Total cost incurred during August Br.1 ,493,400
Total cost to account for Br.1 ,933,400
Cost per equivalent unit direct material H Cost per equivalent unit-conversion cost I
Total cost per equivalent unit J
Total Cost of units completed K
Total cost of WIP August31 L
Additional information
1. There are no spoiled units
2. Direct material is added at the beginning of the production process and
conversion cost is added uniformly through out the process
3. The company uses FIFO process costing
4. The August1 , WIP was 30% complete as to conversion cost
5. The August31 , WIP was 40% complete as to conversion cost
Required: compute the missing amounts and prepare the August product report for
coating department