Cost accounting

Information for the Hi-Test company’s production process for September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process.

Compute each of the following.

1. The number of equivalent units for materials for the month.

2. The number of equivalent units for conversion for the month.

3. The variable cost per equivalent unit of materials for the month.

4. The variable cost per equivalent unit for conversion for the month.

5. The total variable cost of goods transferred out.

6. The total variable cost of ending work in process inventory.

Explain your work in detail and provide in-text citations. At least six (6) peer-

Sample Solution

Cost accounting is a form of managerial accounting Managerial accounting that aims to capture a company’s total cost of production by assessing the variable costs of each step of production as well as fixed costs, such as a lease expense.Cost accounting is used internally by management in order to make fully informed business decisions.Unlike financial accounting, which provides information to external financial statement users, cost accounting is not required to adhere to set standards and can be flexible to meet the needs of management.Cost accounting considers all input costs associated with production, including both variable and fixed costs.Types of cost accounting include standard costing, activity-based costing, lean accounting, and marginal costing.

uld be themselves; because at the end of the day, everyone has let loose and had a dance at some point in their lives. This campaign features people with noticeably different styles, music genres and a few different iPod models that are hardly noticeable but are there. This suggests that this campaign has been curated over time to appeal to essentially everyone. In 2004, Apple released the first campaign in the same style but with a visible character’s (see fig.2). The featuring characters in this specific clip are U2, which is seen to be one of the biggest bands in the world at the time. Throughout the fast-paced video, it is continuously switching back and forth between a blacked-out silhouette from previous clips and the band U2 performing their song ‘vertigo’. As discussed, the silhouettes make the consumer feel like part of the experience and immersing them in the ‘story’ (campaign). By doing this, they are making the consumer feel like they are part of a performance by a huge, well-known brand. “Apple is not selling an MP3 player, they are inviting you to the apple lifestyle” (Chazin, 2009:3) By making the consumer part of the fun in the video, and part of a performance, we are able to fully ingest and embrace the story that’s being told. Saying this, the fact is they are not truly part of it unless they have the iPod, because this is clearly a huge part of the campaign. By making the experience the main feature of their campaign, Apple do not have to blatantly put huge prices and huge images of their products on their campaigns, because the story and characters are selling the brand and the experience that comes along with the products.

Figure 2. Apple (2004)

In 2004, Apple released a silhouette campaign that involved ‘PC vs MAC’ at the end in huge, bold text (see fig.3) (Every iPod ‘silhouette’ ads (2004-2008), 2012). This could be seen as the conflict imbedded in the story, and the PC could be seen as the ‘villain’. Windows has always been Apple’s biggest competitor and the fact that they put ‘PC vs MAC’ in one of their most memorable campaigns, gives a huge shock factor to the consumer. “As storytellers, we get our message across through conflict and its resolution” (Fog, 2004:36). The message that Apple are personifying through the use of this conflict, would be that essentially, Apple is better than PC and if you want to have fun and let loose, buy a mac. Although the ad does not flat out say ‘buy a mac’, they are asking you your own opinion, what would you prefer? By asking this question this instantly makes the consumer feel like they are part of the experience, leaving them wanting more. The fact that apple advertise a Mac computer on an iPod advert, backs up the point of selling the experience. No matter w

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