Managerial Accounting

1) Before answering this question lets review the job and process costing sytems: Job order cost system: • Jobs are assigned to each job or batch • A job may be for a specific order of inventory Process cost system : • This cost system is generally used when a large volume of similar products are manufactured

Answers:

a. A custom yacht builder – job order costing b. A golf course designer – job order costing c. A potato chip manufacturer – process costing d. A business consultant- job order costing e. A plywood manufacturer – process costing f. A Soft drink bottler- process costing g. A film studio – job order costing h. A firm that supervisors bridge construction projects- job order costing i. A manufacturer of fine custom jewelry- job order costing j. A made to order garment factory – job order costing k. A factory making one personal computer model – process costing l. A fertilizer factory – process costing

2)
2.1.
a.

|General Journal |
|Accounts |Debit |Credit |
|Raw Materials |210,000 | |
| Accounts Payable | |210,000 |

b.

| General Journal |
|Accounts |Debit |Credit |
|Work in Process |152,000 | |
|Manufacturing Overhead |