Rabbit Inc. Finance Assingment Help With Solution
Cost Classification Discussion Questions
1. Explain how is it possible to distinguish between direct costs and indirect costs?Discuss by giving examples.
2. Identify the differences in the characteristics of job-order and process costing.
3. Briefly explain how allocations of support-department costs can be used to motivate managers of
4. Rabbit, Inc. had actual manufacturing overhead costs of $1,210,000 and predetermined overhead rate of $4.00 per machine hour. Rabbit, Inc. worked 290,000 machine hours during the period. How much is Rabbit’s manufacturing overhead?
5. For the current period, Rabbit, Inc. started 15,000 units and completed 10,000 units, leaving 5,000 units in process 30 percent complete. How many equivalent units of production did Rabbit, Inc. have for the period?
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Sweet & Sweet Limited produces a product that passes through two departments. For December, the following equivalent unit schedule was prepared for the first department:
Materials Conversion cost
Units completed 10,000 10,000
Units in Ending Work in Process:
Materials (2,000 units, 100% complete) 2,000
Conversion (2,000 units, 25% complete) 500
Equivalent units of output 12,000 10,500
Costs assigned to beginning work in process:
Manufacturing costs incurred during the month:
a. Compute the unit cost for December using the weighted-average method.
b. Determine the cost of goods transferred out.
c. Determine the cost of ending work in process.
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