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ACTIVITY 1 - Introduction To Cost Accounting
ACTIVITY 1 - Introduction To Cost Accounting
ACTIVITY 1 - Introduction To Cost Accounting
COST ACCOUNTING – This field of accounting informs management with the cost of rendering a particular service, buying and
selling a product, and producing a product.
Required:
1. Using the high-low method to estimate the fixed and variable portion of overhead costs based on machine hours
2. If the plant is planning to operate at a level of 450 machine hours next period, what would be the estimated overhead
cost?
COST ACCOUNTING CYCLE
Merchandising Companies
beginning
beginning balance
balance of
of inventory
inventory Purchase
Purchase raw
raw materials
materials
Sold
Sold inventory
inventory (COGS)
(COGS)
Incurred
Incurred Labor
Labor and
and Overhead
Overhead for
for production
production
Computation of COGS:
Beg WIP + DM, DL, OH
Beginning inventory
Plus: Net Purchases cost
cost of
of completed
completed units
units be
be transferred
transferred from
from WIP
WIP to
to FG
FG
Total goods available for sale
Less: Ending Inventory
Cost of Goods Sold cost
cost of
of sold
sold units
units be
be transferred
transferred from
from FG
FG to
to COGS
COGS
QUIZ 1 MIDTERM
Provide solution and final answer.