Discussion Post: Managerial Accounting
A food processing company has two sequential production departments: mixing and cooking. The cost of the January 1 work in process in the cooking department is as follows:
Direct material $79,000
Conversion 30,000
Transferred-in costs 182,000
During what time period and in what department were the $182,000 of cost shown above incurred? Justify your answer.
• What is the difference between transferred-in costs and costs of units completed and transferred. Cite an example of each. (300 words)
• Why do product-costing systems based on a single, volume-based cost driver tend to overcost high-volume products? What undesirable strategic effects can such distortion of product costs have? Explain your answer and provide an example. (300 words)
The response should include a reference list. Using double-space, Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.