Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please be as detail as possible and let me know for each empty box I should put above. Kimi Nishimura is the controller of Yoshida,

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

please be as detail as possible and let me know for each empty box I should put above.

Kimi Nishimura is the controller of Yoshida, Inc., an electronic controls company After Ms. Nishimura attended the seminar, she suggested that Yoshida located in Kobe. She recently attended a seminar on activity-based costing (ABC) experiment with an ABC system in the Automotive Controls Department. She in Tokyo. Yoshida's traditional cost accounting system has three cost categories: identified four main activities that cause indirect production costs in the direct materials, direct labor, and indirect production costs. The company allocates department and selected a cost driver to use as a cost-allocation base for each indirect production costs on the basis of direct-labor cost. The following is the activity as follows: 20x0 budget for the automotive controls department (in thousands of Japanese (Click the icon to view the ABC data.) yen): In 20X0 the Automotive Controls Department expects to produce 92,000 control (Click the icon to view the 20/0 budget.) units, use 590 quality control hours, and ship 8,500 boxes. Read the requirements. Requirement 1. Explain how Yoshida, Inc., allocates its indirect production costs using its traditional cost system. Include a computation of the allocation rate used. The traditional cost system allocates indirect production costs based entirely on direct labor cost. Select the formula(s) and then calculate the indirect cost rate(s) under the traditional cost system. (Only use as many lines as needed to show the indirect cost rate(s) used under the traditional cost system. Round the rate(s) to two decimal places, XX.) Indirect cost rate formula Indirect cost rate 4 Direct materials Direct labor Indirect production costs Total cost 60,000 53,450 26,725 140,175 \ Activity Receiving Assembly Quality control Cost-Allocation Base Direct materials cost Number of control units QC hours Predicted 20x0 Cost (#000) 7,200 13,800 1,475 4,250 Shipping Number of boxes shipped TOTAL 26,725 1. Explain how Yoshida, Inc., allocates its indirect production costs using its traditional cost system. Include a computation of the allocation rate used. 2. Explain how Yoshida, Inc., would allocate indirect production costs under Ms. Nishimura's proposed ABC system. Include a computation of all the allocation rates used. 3. Suppose Yoshida prices its products at 10% above total production cost. An order came in from Subaru for 4,000 control units. Nishimura estimates that filling the order will require 48,000,000 of direct-materials cost and 1,600,000 of direct labor. It will require 40 hours of QC inspection time and will be shipped in 620 boxes. a. Compute the price charged for the 4,000 control units if Yoshida uses its traditional cost accounting system. b. Compute the price charged for the 4,000 control units if Yoshida uses the ABC system proposed by Ms. Nishimura. 4. Explain why costs are different in the two costing systems. Include an indication of which costs you think are most accurate and why. OXO budget.) In 20X0 the Automotiv units, use 590 quality Read the requiremen Assembly costs Direct labor cost Direct materials cost Indirect production costs Number of boxes shipped Number of control units QC hours Quality control costs Receiving costs Shipping costs shida, Inc., allocates its indirect production costs using its traditional costs ates indirect production costs based entirely on direct labor cost. alculate the indirect cost rate(s) under the traditional cost system. (Only us ystem. Round the rate(s) to two decimal places, .XX.) te formula Indirect cost rate 4 = II In 20X0 the Automotive Cont units, use 590 quality control Read the requirements production costs using its traditional cost system. Assembly costs Direct labor cost Direct materials cost Indirect production costs Number of boxes shipped Number of control units QC hours Quality control costs Receiving costs Shipping costs ased entirely on direct labor cost. under the traditional cost system. (Only use as ma decimal places, XX.) Indirect cost rate 4 irect cost rate per direct labor yen per direct material yen yen per box shipped yen per control unit yen per QC hour Choose from any list or enter any number in the input fields and then click Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Management A Complete Guide

Authors: Gerardus Blokdyk

2019 Edition

0655813640, 978-0655813644

More Books

Students also viewed these Accounting questions