BEC1.1

Question 1

Assigning manufacturing overhead costs

Answer 1

Step 1: Budgeted overhead costs / Estimated Cost Driver= Overhead Rate

Step 2: Applied overhead = Actual cost driver x Overhead Rate(from step 1)

Question 2

Backflush costing

Answer 2

• work our way back to determine hoe a products costs should be allocated, nothing “in process” don’t account for costs and products are worthless until till items are finished

Question 3

Job costing vs. process costing

Answer 3

• job costing for specific unique items, process costing for homogenous same items
• can have a mix of both

Question 4

Cost of goods manufactured**

Answer 4

memorize also memorize entire flow

material used
work in process
cost of goods manufactured
cost of goods sold

Question 5

FIFO equivalent units formula pg 1-52,53

Answer 5

k

Question 6

Weighted average equivalent units

Answer 6

a) Units completed
+
b) Ending WIP x % complete

Question 7

FIFO equivalent units of production

Answer 7

a) Beginning WIP x % left to complete
 \+
b) Units completed - Beginning WIP  
\+
c) Ending WIP x % complete(same last step as weighted average)

Question 8

Cost PER Equivalent unit

Answer 8

Weighted average = Beginning Cost + Current cost / equivalent units

FIFO = Current cost only / equivalent units