Ieyelove

In: Business and Management

Submitted By ieyelove
Words 1375
Pages 6
1. Question : (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?

: 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 : Chapter 3

2. Question : (TCO F) Process costing would be appropriate for each of the following except:

: custom furniture manufacturing. oil refining. grain milling. newsprint production. : Chapter 4

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: Units Material Cost
Work in process on October 1 6,000 $3,000
Units started in October 50,000 $25,560
Units completed and transferred to next Department during October 44,000

What was the materials cost of work in process at on October 31?

: $3,060 $5,520 $6,000 $6,120 : To solve for units transferred:
+ Work in process, beginning 6,000
+ Units started into production during the month 50,000
- Units completed and transferred out during the month 44,000
= Work in process, ending 12,000

Equivalent Units of Production: Materials
Transferred to next department 44,000
Ending work in process
(conversion: 17,000 units x 10% complete) 12,000
Equivalent units of production 56,000

Cost per Equivalent Unit: Materials
Cost of beginning work in process $3,000
Cost added during the period 25,560
Total cost (a) 28,560 Equivalent…...

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