1. (TCO F) For which situation(s) below would an organization be more likely to use a job-order costing system of accumulating product costs rather than a process costing system? (Points : 5)
a steel factory that processes iron ore into steel bars
a factory that processes sugar and other ingredients into black licorice
a costume maker that makes specialty costumes for figure skaters
all of these
2. (TCO F) Which of the following companies would be most likely to use a job-order costing system rather than a process costing system? (Points : 5)
fast food restaurant
shipbuilding
crude oil refining
candy making
3. (TCO F) Unizat Corporation uses the weighted-average method in its process costing system. The following information pertains to one of the company's processing departments for a recent month:
All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to: (Points : 5)
$0.86
$0.90
$1.10
$1.18
Page: 1 2
Time Remaining:
1. (TCO F) Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. A number of companies in different industries are listed below:
i. Specialty coffee roaster (roasts small batches of specialty coffee beans)
ii. Custom aircraft builder
iii. Brick manufacturer
iv. Microbrewery that produces a number of different beers
v. Steel company making chain link fences from iron ore
Required:
For each company, indicate whether the company is most likely to use job-order costing or process costing. (Points : 15)
2. (TCO F) Job 827 was recently completed. The following data have been recorded on its job cost sheet:
The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13 per machine-hour.
Required: Compute the unit product cost that would appear on the job cost sheet for this job. (Points : 15)
3. (TCO F) The Allen Company uses a job-order costing system. The following activity took place during the month of March:
Required: Prepare journal entries to record the information above. Key your entries by the letters a through i. Assume all purchases are made on account. (Points : 15)
4. (TCO F) Miller Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information:
The company uses the weighted-average cost method in its process costing system. The ending inventory is 50% complete with respect to conversion costs.
Required:
i. Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs.
ii. Determine the cost transferred to finished goods.
iii. Determine the amount of cost that should be assigned to the ending work in process inventory. (Points : 15)
5. (TCO F) Weisinger Corporation has provided the following data for the month of January:
Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold in good form. (Points : 15)
a steel factory that processes iron ore into steel bars
a factory that processes sugar and other ingredients into black licorice
a costume maker that makes specialty costumes for figure skaters
all of these
2. (TCO F) Which of the following companies would be most likely to use a job-order costing system rather than a process costing system? (Points : 5)
fast food restaurant
shipbuilding
crude oil refining
candy making
3. (TCO F) Unizat Corporation uses the weighted-average method in its process costing system. The following information pertains to one of the company's processing departments for a recent month:
All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to: (Points : 5)
$0.86
$0.90
$1.10
$1.18
Page: 1 2
Time Remaining:
1. (TCO F) Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. A number of companies in different industries are listed below:
i. Specialty coffee roaster (roasts small batches of specialty coffee beans)
ii. Custom aircraft builder
iii. Brick manufacturer
iv. Microbrewery that produces a number of different beers
v. Steel company making chain link fences from iron ore
Required:
For each company, indicate whether the company is most likely to use job-order costing or process costing. (Points : 15)
2. (TCO F) Job 827 was recently completed. The following data have been recorded on its job cost sheet:
The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13 per machine-hour.
Required: Compute the unit product cost that would appear on the job cost sheet for this job. (Points : 15)
3. (TCO F) The Allen Company uses a job-order costing system. The following activity took place during the month of March:
Required: Prepare journal entries to record the information above. Key your entries by the letters a through i. Assume all purchases are made on account. (Points : 15)
4. (TCO F) Miller Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information:
The company uses the weighted-average cost method in its process costing system. The ending inventory is 50% complete with respect to conversion costs.
Required:
i. Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs.
ii. Determine the cost transferred to finished goods.
iii. Determine the amount of cost that should be assigned to the ending work in process inventory. (Points : 15)
5. (TCO F) Weisinger Corporation has provided the following data for the month of January:
Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold in good form. (Points : 15)
Comments
Post a Comment