ACC 206 Week 5 Discussion 2

ACC 206 Week 5 Discussion 2 | Assignment Help | Ashford University 

Week 5 - Discussion 2

Product Costing

Prior to beginning work on this discussion, read Chapters 21 and 22 in the textbook In addition, the MyLab materials listed in the Recommended Resources section this week may provide more in-depth information for this discussion (optional).

Write: Make sure your response addressing the prompt is more than 200 words and that you include an in-text citation or a brief quote from the reading material where appropriate.

As presented in Chapter 21, there are two methods of determining product cost: the absorption costing method and the variable costing method.

•           Explain how costs are calculated using both methods.

•           Which method is required by the generally accepted accounting principles (GAAP)?

•           Develop an example in columnar format that compares the two methods of cost calculation using the following table:

The unit product cost of the company is computed as follows:

            Absorption costing  Variable costing

Direct materials                    

Direct labor               

Variable manufacturing overhead             

Fixed manufacturing overhead                  

Total unit cost                       

Guided Response: Respond to at least two of your classmates by commenting on their posts. Though two replies are the basic expectation for class discussions, for deeper engagement and learning you are encouraged to provide responses to any comments or questions others have given to you. Continuing to engage with peers and the instructor will further the conversation and provide you with opportunities to demonstrate your content expertise, critical thinking, and real-world experiences with the discussion topics.