Topic 9 Chapter 11 - Operation Costing Data & Types of Budget Note

pening WIP 4,000 tons 321,000-4,000 unite started 12,000 tona units compicted 19,000 tons } cissing WIF 2,000 tons 21,000-ters 2. Similarities between process corting & job-order casting ort true? both systems assign production coats to units of output beth autems requira edensive knowledge of financial accounting-X the flow of cors through the manufcruing accouns i rosemary the are using weighted-average process-coating syston All materials are added of the beginning of the process, convention casts are incurred everly throughout production 40,000 units were finished during the period & had 15,000 units in progress of year-end, the latter at 401 stage of completion. Total material costs amounted to $200,000, conversion corts were 44,000 completed closing 1010 15,000 401 15,000 6,000 55,000 55,000 44,000 $330,000 $44,000 $634.000 $5,000 44,000 84/4 কতাম cost of goods completed 10,000u aju $530,000 cost of ending wif(iszcou$4/4)+6,000 x ३१/५) 4114.000 when calculating unit costs under the weighted avg process-coating method, the unit cast is based on a summation of the coole in the beginning wip inventory plus costs incurred in the cument period all the casts entering wit from the units in beginning inventory plus the costs for the work completed during the current accounting period. 40,000 40,000 40,000 TOPIC 9: chpt 11 Tool used by most companies to control overhead costs is flexible budget flexible budget is not tied to only one level of activity, it covers a range of activity within which the firm may operate flexible overhead budget detailed plan for controlling several costs that vary with a range of activity variable overhead efficiency variance SVR (AH-SH) * SR fixed overhead Fund overhead budget variance budgeted fixed overhead - applied fixed overhead Fund overhead variance budgeted fixed overhead-applied fixed overhead plan budgeted foh planned activity (hrs) Interpretation of Variable Overhead Efficiency Variance: It is related to the discrepancy in using the activity upon which variable overhead is budgeted. For me, the basis for the variable overhead budget is available hours, an unfavorable variance. without access to the number of budgeted hours. Therefore, it is impossible to say what variable-overhead items are and further, it results from inefficiency or inefficiency, relative to the standard.