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A company manufactures a machine. The machine is made from two types of raw material and is assembled in a factory using skilled labour. The engine for the machine is purchased from an outside supplier.
The following costs relate to the manufacture of one machine:
What is the finished goods inventory valuation for one machine using throughput costing?
Suggested Answer: C
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33 comments · newest first
HY
Hyman
11 months ago
Isn't the engine cost a big factor here?
GR
Gregoria
11 months ago
Definitely going with option B, $38.00 feels right.
AS
Ashley
11 months ago
Wait, how can it be $48.00? That seems way too high!
TA
Talia
12 months ago
I think the finished goods inventory should be $24.00.
RO
Rosalind
12 months ago
The machine uses two types of raw materials.
QU
Quentin
1 year ago
If I recall correctly, throughput costing emphasizes the contribution of each unit, so I might lean towards the lower options like $24 or $6.
DA
Daniel
1 year ago
I think the finished goods valuation should only include direct materials and labor, but I’m a bit confused about the engine cost.
FR
Freeman
1 year ago
This question reminds me of a similar practice one where we had to calculate inventory using variable costing. I think we need to exclude fixed costs.
ED
Edmond
1 year ago
I remember throughput costing focuses on the contribution margin, but I'm not sure how to apply it here.
LI
Ling
1 year ago
This is a tricky one. Throughput costing is a bit different from the traditional absorption costing I'm more familiar with. I'll need to really focus on understanding the key principles here to arrive at the correct answer.
LA
Latosha
1 year ago
Okay, I think I've got a good handle on this. I'll start by identifying the direct materials, direct labor, and outside purchases, then add those up to get the total cost per machine. Shouldn't be too difficult if I work through it step-by-step.
MA
Major
1 year ago
Hmm, I'm a bit unsure about this one. The information provided seems clear, but I want to make sure I'm not missing any key details in the calculation. I'll need to review the throughput costing concept carefully.
BR
Brigette
1 year ago
This looks like a straightforward throughput costing question. I'll need to focus on the direct materials, direct labor, and outside purchases to determine the finished goods inventory value.
GO
Goldie
1 year ago
I'm feeling pretty confident about this one. I think the Kinesis Data Firehose option is the way to go - it should give us the lowest latency.
EL
Elouise
1 year ago
Wait, do I need to create a database while collecting? Option A seems weird. I'll probably go with avoiding excessive document handling.
BE
Beatriz
1 year ago
This looks like a pretty straightforward VPN configuration question. I'm confident I can handle this one.
CO
Cory
1 year ago
I feel a bit unsure, but I remember something about data governance from the last practice session. So maybe option B is the right one?
LA
Lawrence
1 year ago
Throughput costing, huh? Sounds like something you'd find in a physics lab, not a manufacturing plant. I'm going to go with the answer that involves the most math, because that's how I roll. D) $48.00, let's do this!
AM
Amie
1 year ago
Throughput costing, huh? Sounds like a fancy term for 'how much does it cost to actually make the thing?' I'm going to go with A) $24.00 and hope for the best. Fingers crossed!
CH
Chi
1 year ago
I agree with you, A) $24.00 does sound like a good option. Let's see if we're right.
PA
Paris
1 year ago
I'm not sure, but I'll pick D) $48.00 and see if that's correct.
XU
Xuan
1 year ago
I think I'll go with B) $38.00. Seems like a reasonable choice.
PE
Pearline
1 year ago
Ah, the age-old debate between full absorption costing and throughput costing. I'm feeling saucy today, so I'm going to go with D) $48.00 just to stir things up a bit.
NA
Natalya
1 year ago
Okay, let's break this down. The question is asking for the finished goods inventory valuation using throughput costing, which means we're only considering the truly variable costs. I'm going with C) $6.00 on this one.
FR
Frankie
1 year ago
So, the finished goods inventory valuation for one machine using throughput costing is $6.00.
PI
Pilar
1 year ago
I agree, it's important to focus on the truly variable costs when using throughput costing.
DE
Denny
1 year ago
I think you're right, C) $6.00 makes sense because throughput costing only considers variable costs.
CH
Chantell
2 years ago
I'm not sure, but I think it might be $48.00 considering all the costs involved in manufacturing the machine.
RU
Ruby
2 years ago
I disagree, I believe it would be $38.00 because of the direct materials and direct labor costs.
VO
Vonda
2 years ago
Ah, the classic throughput costing question! Let's see, we've got two types of raw material, skilled labor, and an engine from an outside supplier. Hmm, I'm thinking B) $38.00 is the way to go here.
AL
Allene
1 year ago
Yes, it makes sense when you consider all the components that go into manufacturing the machine.
MA
Matt
1 year ago
I agree, B) $38.00 seems like the correct choice considering all the costs involved.
ST
Staci
2 years ago
I think the finished goods inventory valuation would be $24.00.