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Two of the newer partners of BBP,LLC are looking at these forecasts and realize that the tax services they offer are fairly standardized in process and thinks they can be recorded as such. They think the firm should look at recording this in under a Process Costing methodology. They feel there are 2 major processes in which tax returns operate under, a data collection and data entry. They want to view a process cost system for tracking the costs of the tax services using a weighted-average process costing method. All costs are incurred evenly throughout the process. They have provided the following data about the current clients to assist you: Data Collection: Beg WiP Started During the Year Completed and Transferred Out End WiP (85% Complete) Costs: Beg Wip Incurred During the Year: Staff Labor Manager Labor 268,840 Admin & Overhead 1,244,705 12 Clients 38 Clients 42 Clients 8 Clients $201,066 811,008 Data Entry: Beg WiP Started During the Year Completed and Transferred Out End WiP (30% Complete) Costs: Beg WiP Incurred During the Year: Staff Labor Manager Labor Admin & Overhead 0 Clients 50 Clients 46 Clients 4 Clients $ -0- 1,216,512 1,075,360 2,311,595 Required: a. Based on the process costing system, what will the ending WiP for tax services DATA COLLECTION? b. Based on the process costing system, total value transferred out of DATA ENTRY? c. Based on the process costing system, what is the total cost for tax services for Client 18, compare this to the cost provided by the job order system. d. Would you recommend this system, why or why not? (Provide reasons for or against the process cost system as compared to the job order system for tax services.) Two of the newer partners of BBP,LLC are looking at these forecasts and realize that the tax services they offer are fairly standardized in process and thinks they can be recorded as such. They think the firm should look at recording this in under a Process Costing methodology. They feel there are 2 major processes in which tax returns operate under, a data collection and data entry. They want to view a process cost system for tracking the costs of the tax services using a weighted-average process costing method. All costs are incurred evenly throughout the process. They have provided the following data about the current clients to assist you: Data Collection: Beg WiP Started During the Year Completed and Transferred Out End WiP (85% Complete) Costs: Beg Wip Incurred During the Year: Staff Labor Manager Labor 268,840 Admin & Overhead 1,244,705 12 Clients 38 Clients 42 Clients 8 Clients $201,066 811,008 Data Entry: Beg WiP Started During the Year Completed and Transferred Out End WiP (30% Complete) Costs: Beg WiP Incurred During the Year: Staff Labor Manager Labor Admin & Overhead 0 Clients 50 Clients 46 Clients 4 Clients $ -0- 1,216,512 1,075,360 2,311,595 Required: a. Based on the process costing system, what will the ending WiP for tax services DATA COLLECTION? b. Based on the process costing system, total value transferred out of DATA ENTRY? c. Based on the process costing system, what is the total cost for tax services for Client 18, compare this to the cost provided by the job order system. d. Would you recommend this system, why or why not? (Provide reasons for or against the process cost system as compared to the job order system for tax services.) Two of the newer partners of BBP,LLC are looking at these forecasts and realize that the tax services they offer are fairly standardized in process and thinks they can be recorded as such. They think the firm should look at recording this in under a Process Costing methodology. They feel there are 2 major processes in which tax returns operate under, a data collection and data entry. They want to view a process cost system for tracking the costs of the tax services using a weighted-average process costing method. All costs are incurred evenly throughout the process. They have provided the following data about the current clients to assist you: Data Collection: Beg WiP Started During the Year Completed and Transferred Out End WiP (85% Complete) Costs: Beg Wip Incurred During the Year: Staff Labor Manager Labor 268,840 Admin & Overhead 1,244,705 12 Clients 38 Clients 42 Clients 8 Clients $201,066 811,008 Data Entry: Beg WiP Started During the Year Completed and Transferred Out End WiP (30% Complete) Costs: Beg WiP Incurred During the Year: Staff Labor Manager Labor Admin & Overhead 0 Clients 50 Clients 46 Clients 4 Clients $ -0- 1,216,512 1,075,360 2,311,595 Required: a. Based on the process costing system, what will the ending WiP for tax services DATA COLLECTION? b. Based on the process costing system, total value transferred out of DATA ENTRY? c. Based on the process costing system, what is the total cost for tax services for Client 18, compare this to the cost provided by the job order system. d. Would you recommend this system, why or why not? (Provide reasons for or against the process cost system as compared to the job order system for tax services.) Two of the newer partners of BBP,LLC are looking at these forecasts and realize that the tax services they offer are fairly standardized in process and thinks they can be recorded as such. They think the firm should look at recording this in under a Process Costing methodology. They feel there are 2 major processes in which tax returns operate under, a data collection and data entry. They want to view a process cost system for tracking the costs of the tax services using a weighted-average process costing method. All costs are incurred evenly throughout the process. They have provided the following data about the current clients to assist you: Data Collection: Beg WiP Started During the Year Completed and Transferred Out End WiP (85% Complete) Costs: Beg Wip Incurred During the Year: Staff Labor Manager Labor 268,840 Admin & Overhead 1,244,705 12 Clients 38 Clients 42 Clients 8 Clients $201,066 811,008 Data Entry: Beg WiP Started During the Year Completed and Transferred Out End WiP (30% Complete) Costs: Beg WiP Incurred During the Year: Staff Labor Manager Labor Admin & Overhead 0 Clients 50 Clients 46 Clients 4 Clients $ -0- 1,216,512 1,075,360 2,311,595 Required: a. Based on the process costing system, what will the ending WiP for tax services DATA COLLECTION? b. Based on the process costing system, total value transferred out of DATA ENTRY? c. Based on the process costing system, what is the total cost for tax services for Client 18, compare this to the cost provided by the job order system. d. Would you recommend this system, why or why not? (Provide reasons for or against the process cost system as compared to the job order system for tax services.) Two of the newer partners of BBP,LLC are looking at these forecasts and realize that the tax services they offer are fairly standardized in process and thinks they can be recorded as such. They think the firm should look at recording this in under a Process Costing methodology. They feel there are 2 major processes in which tax returns operate under, a data collection and data entry. They want to view a process cost system for tracking the costs of the tax services using a weighted-average process costing method. All costs are incurred evenly throughout the process. They have provided the following data about the current clients to assist you: Data Collection: Beg WiP Started During the Year Completed and Transferred Out End WiP (85% Complete) Costs: Beg Wip Incurred During the Year: Staff Labor Manager Labor 268,840 Admin & Overhead 1,244,705 12 Clients 38 Clients 42 Clients 8 Clients $201,066 811,008 Data Entry: Beg WiP Started During the Year Completed and Transferred Out End WiP (30% Complete) Costs: Beg WiP Incurred During the Year: Staff Labor Manager Labor Admin & Overhead 0 Clients 50 Clients 46 Clients 4 Clients $ -0- 1,216,512 1,075,360 2,311,595 Required: a. Based on the process costing system, what will the ending WiP for tax services DATA COLLECTION? b. Based on the process costing system, total value transferred out of DATA ENTRY? c. Based on the process costing system, what is the total cost for tax services for Client 18, compare this to the cost provided by the job order system. d. Would you recommend this system, why or why not? (Provide reasons for or against the process cost system as compared to the job order system for tax services.) Two of the newer partners of BBP,LLC are looking at these forecasts and realize that the tax services they offer are fairly standardized in process and thinks they can be recorded as such. They think the firm should look at recording this in under a Process Costing methodology. They feel there are 2 major processes in which tax returns operate under, a data collection and data entry. They want to view a process cost system for tracking the costs of the tax services using a weighted-average process costing method. All costs are incurred evenly throughout the process. They have provided the following data about the current clients to assist you: Data Collection: Beg WiP Started During the Year Completed and Transferred Out End WiP (85% Complete) Costs: Beg Wip Incurred During the Year: Staff Labor Manager Labor 268,840 Admin & Overhead 1,244,705 12 Clients 38 Clients 42 Clients 8 Clients $201,066 811,008 Data Entry: Beg WiP Started During the Year Completed and Transferred Out End WiP (30% Complete) Costs: Beg WiP Incurred During the Year: Staff Labor Manager Labor Admin & Overhead 0 Clients 50 Clients 46 Clients 4 Clients $ -0- 1,216,512 1,075,360 2,311,595 Required: a. Based on the process costing system, what will the ending WiP for tax services DATA COLLECTION? b. Based on the process costing system, total value transferred out of DATA ENTRY? c. Based on the process costing system, what is the total cost for tax services for Client 18, compare this to the cost provided by the job order system. d. Would you recommend this system, why or why not? (Provide reasons for or against the process cost system as compared to the job order system for tax services.) Two of the newer partners of BBP,LLC are looking at these forecasts and realize that the tax services they offer are fairly standardized in process and thinks they can be recorded as such. They think the firm should look at recording this in under a Process Costing methodology. They feel there are 2 major processes in which tax returns operate under, a data collection and data entry. They want to view a process cost system for tracking the costs of the tax services using a weighted-average process costing method. All costs are incurred evenly throughout the process. They have provided the following data about the current clients to assist you: Data Collection: Beg WiP Started During the Year Completed and Transferred Out End WiP (85% Complete) Costs: Beg Wip Incurred During the Year: Staff Labor Manager Labor 268,840 Admin & Overhead 1,244,705 12 Clients 38 Clients 42 Clients 8 Clients $201,066 811,008 Data Entry: Beg WiP Started During the Year Completed and Transferred Out End WiP (30% Complete) Costs: Beg WiP Incurred During the Year: Staff Labor Manager Labor Admin & Overhead 0 Clients 50 Clients 46 Clients 4 Clients $ -0- 1,216,512 1,075,360 2,311,595 Required: a. Based on the process costing system, what will the ending WiP for tax services DATA COLLECTION? b. Based on the process costing system, total value transferred out of DATA ENTRY? c. Based on the process costing system, what is the total cost for tax services for Client 18, compare this to the cost provided by the job order system. d. Would you recommend this system, why or why not? (Provide reasons for or against the process cost system as compared to the job order system for tax services.) Two of the newer partners of BBP,LLC are looking at these forecasts and realize that the tax services they offer are fairly standardized in process and thinks they can be recorded as such. They think the firm should look at recording this in under a Process Costing methodology. They feel there are 2 major processes in which tax returns operate under, a data collection and data entry. They want to view a process cost system for tracking the costs of the tax services using a weighted-average process costing method. All costs are incurred evenly throughout the process. They have provided the following data about the current clients to assist you: Data Collection: Beg WiP Started During the Year Completed and Transferred Out End WiP (85% Complete) Costs: Beg Wip Incurred During the Year: Staff Labor Manager Labor 268,840 Admin & Overhead 1,244,705 12 Clients 38 Clients 42 Clients 8 Clients $201,066 811,008 Data Entry: Beg WiP Started During the Year Completed and Transferred Out End WiP (30% Complete) Costs: Beg WiP Incurred During the Year: Staff Labor Manager Labor Admin & Overhead 0 Clients 50 Clients 46 Clients 4 Clients $ -0- 1,216,512 1,075,360 2,311,595 Required: a. Based on the process costing system, what will the ending WiP for tax services DATA COLLECTION? b. Based on the process costing system, total value transferred out of DATA ENTRY? c. Based on the process costing system, what is the total cost for tax services for Client 18, compare this to the cost provided by the job order system. d. Would you recommend this system, why or why not? (Provide reasons for or against the process cost system as compared to the job order system for tax services.)
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ANSWER a Based on the process costing system the ending WIP for tax services ... View the full answer
Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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