AC505 Week2quiz
(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?
Student Answer: 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
Comments:
2.
Question :
(TCO F) Process costing would be appropriate for each of the following except:
Student Answer: custom furniture manufacturing.
oil refining.
grain milling.
newsprint production.
Comments:
3.
Question :
(TCO F) Lucas Company uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in the Forming Department, which is the first of two stages in its production process. Information concerning operations in the Forming Department in October follows:
What were the materials cost of work in process at October 31?
Student Answer:
$3,060
$5,520
$6,000
$6,120
(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.
Student Answer: Specialty coffee roaster - job order costing Custom aircraft builder- process costing Brick manufacturer would consider Process costing Microbrewery that produces a number of different beers i would say Process costing Steel company making chain link fences from iron ore i would say Job order
Student Answer: 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
Comments:
2.
Question :
(TCO F) Process costing would be appropriate for each of the following except:
Student Answer: custom furniture manufacturing.
oil refining.
grain milling.
newsprint production.
Comments:
3.
Question :
(TCO F) Lucas Company uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in the Forming Department, which is the first of two stages in its production process. Information concerning operations in the Forming Department in October follows:
What were the materials cost of work in process at October 31?
Student Answer:
$3,060
$5,520
$6,000
$6,120
(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.
Student Answer: Specialty coffee roaster - job order costing Custom aircraft builder- process costing Brick manufacturer would consider Process costing Microbrewery that produces a number of different beers i would say Process costing Steel company making chain link fences from iron ore i would say Job order