Question

Hayword, Inc. uses weighted-average costing has two departments, and has provided data related to its mixing department for the month of July. The Controller has asked you to prepare a cost reconcile

Answer 1

The question asks for the creation of a table including outputs, total cost, marginal cost, average cost, variable cost, and average variable cost for Hayword, Inc.'s mixing department, which utilizes weighted-average costing.

Step-by-step explanation:

The subject of the question is related to cost accounting, specifically the preparation of a cost reconciliation report using the weighted-average costing method in a manufacturing setting. The question involves terms like total cost, marginal cost, average cost, variable cost, and average variable cost which are crucial in cost accounting and managerial decision making.

To respond to this question, one must be familiar with accounting concepts and formulas such as:

• Total Cost (TC): The sum of all costs incurred in the production process.
• Marginal Cost (MC): The change in total cost that arises when the quantity produced is incremented by one unit.
• Average Cost (AC) or Average Total Cost (ATC): The total cost divided by the number of units produced.
• Variable Cost (VC): Costs that vary with the level of output.
• Average Variable Cost (AVC): The variable cost divided by the number of units produced.

While specific figures are not provided in the question, a table that includes these terms could be constructed as follows, assuming we had the necessary data:

OutputTotal Cost (TC)Marginal Cost (MC)Average Cost (AC)Variable Cost (VC)Average Variable Cost (AVC)..................