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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 43
JIT Manufacturing and Process Costing
Friedman Company uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes stands for flat-screen televisions. The cost of production for the month of April is given below.
During May, 30,000 stands were produced and sold.
Required:
1. Explain why process costing can be used for computing the cost of production for the stands.
2. Calculate the cost per unit for a stand.
3. Explain how activity-based costing can be used to determine the overhead assigned to the cell.
Friedman Company uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes stands for flat-screen televisions. The cost of production for the month of April is given below.
During May, 30,000 stands were produced and sold.
Required:
1. Explain why process costing can be used for computing the cost of production for the stands.
2. Calculate the cost per unit for a stand.
3. Explain how activity-based costing can be used to determine the overhead assigned to the cell.
Explanation
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Friedman Company uses JIT manufacturing....
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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