9.2 and 9.4 ANALYSIS AND INTERPRETATION PROBLEMS AIP 9.1 Using Job-Order Cost Sh
ID: 2518305 • Letter: 9
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9.2 and 9.4
ANALYSIS AND INTERPRETATION PROBLEMS AIP 9.1 Using Job-Order Cost Sheets LO 2 The shop foreman ia complaining to the comvoler about al the time her workers are wasi n filing our loborder cost sheets. She estimates that 10 percent of her employees' ime i recarding labor hours spent on dilerent jobs. Given thot the direct labor costs of tref ore £2 million per year, the foremon estimales that the company is losing [200,000 yer compleing the ?oborder co sheets What aternatives exist to vaing worker time to complete job order cost sheets? AIP 9.2 Job-Order and Process Casting LO 1 A manogement g prefessor was trying to explain the difference behween job or costing and process costing to her class. She pointed out that a job-order generaly used when disinct botches or 'jobs' can be identhied. Ahernatively. process costi s used for the confinual processing of homogenous products. A sudent suggested ano? difference behween job-order and process cosing. He noted that on the one hand, jobord costs are determined at the time the job is being performed by using pre-determined ove rates. On the other hand, process costs are normally determined at the end of the peried on the number of equivolent units produced and octual overheod costs joborder costs and process costs are vsed for planning purposes? AIP 9.3 Modified Job-Order and Process Costing LO 1, 2 What does the timing difference betwsen joborder casfing and process costing say obout ho The Trophy Company mokes medollions for sporting events including the upcoming Olympi Festival. All of the medallions are exacthy the same, except for the type of metal that is stompe into the medalion. The company makes gold, silver, and bronze medallions. Each of thes medalions goes through the some steps of cuting, stomping. polishing, and pockoging. Th controller is uncerlain about whether to use a job-order syslem or a process costing system determine he costs of the different ypes of medallions. that would be suitable for the Trophy Compony. AIP 9.4 Applicotion Rates for Departments LO 7 blowing departments (A, B, and C) that revolve oround three dilferent furnoces. The work Provide orguments for the use of both types of costing syslems. Suggest a hybrid costing systhem The Glass Key Company monufoctures handblown gloss pieces. The compony has three glass performed in each of these deportments can be replicoled by any of the ofher departments but department C has newer and more expensive equipment that has a higher depreciatian expense. Overhead costs are allocated to the different botches of glassware based on the direch obor hours Each of the glass-blowing departments has its own application rote, with the rale n department C being the largest. Glass Key prices its products based on absorbed costs, o customers have been asking thot their special orders be performed in departments A or B As a resul, department C, with the best equipment, is being used the leas Whor is wrong with Glass Key's aperations? What are some remedies for this problemExplanation / Answer
AIP 9.
The wastage is because of recording labour hours spent at different jobs, so inspite of manual intervention the bio metric cards can be used to note the time taken by them rather than watching manually.
Cost 2000000 Pounds Waste % 10% Waste Value 200000Related Questions
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