Managerial Accounting
3rd Edition
ISBN: 9780077826482
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Chapter 3, Problem 1MC
To determine
Concept introduction:
Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.
To choose:
The company that will use the Process Costing System
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Choose the most likely used costing system for the industries listed below. choose either process costing or job order costing
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Which of the following manufacturers would most likely not use a process-cost accounting system? A. A
producer of computer monitors. B. A paint manufacturer. C. A producer of frozen orange juice. D. A builder
of customized yachts. E. A lumber mill.
Which company is least likely to use a process costing system?
a. Paper manufacturer
b. Soft drink bottler
c. Accounting firm
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Chapter 3 Solutions
Managerial Accounting
Ch. 3 - Briefly describe the difference between job order...Ch. 3 - Prob. 2QCh. 3 - Explain the differences between Raw Materials...Ch. 3 - Explain the flow of costs in a process costing...Ch. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 15QCh. 3 - Prob. 16QCh. 3 - What triggers the cost of manufacturing to be...Ch. 3 - Prob. 1MCCh. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MCCh. 3 - Prob. 6MCCh. 3 - Prob. 7MCCh. 3 - The primary difference between FIFO and...Ch. 3 - Prob. 9MCCh. 3 - Prob. 10MCCh. 3 - Prob. 1MECh. 3 - Prob. 2MECh. 3 - Prob. 3MECh. 3 - Prob. 4MECh. 3 - Prob. 5MECh. 3 - Calculation Cost per Equivalent unit...Ch. 3 - Prob. 7MECh. 3 - Prob. 8MECh. 3 - Prob. 9MECh. 3 - Prob. 10MECh. 3 - Prob. 11MECh. 3 - Prob. 12MECh. 3 - Calculating Equivalent Units (FIFO) The Cuttilg...Ch. 3 - Compare Weighted-Average and FIFO Process Costing...Ch. 3 - Prob. 15MECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Prob. 8ECh. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Prob. 11ECh. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Prob. 14ECh. 3 - Prob. 15ECh. 3 - Prob. 16ECh. 3 - Calculating Equivalent Units, Unit Costs, and Cost...Ch. 3 - Prob. 18ECh. 3 - Prob. 19ECh. 3 - Prob. 20ECh. 3 - Prob. 21ECh. 3 - Recording Manufacturing Costs in Process Costing...Ch. 3 - Prob. 1.1GAPCh. 3 - Prob. 1.2GAPCh. 3 - Prob. 2GAPCh. 3 - Preparing a Process Costing Production Report...Ch. 3 - Prob. 3.2GAPCh. 3 - Prob. 4GAPCh. 3 - Prob. 5.1GAPCh. 3 - Prob. 5.2GAPCh. 3 - Prob. 6GAPCh. 3 - Prob. 1.1GBPCh. 3 - Prob. 1.2GBPCh. 3 - Preparing a Process Costing Production Report...Ch. 3 - Preparing a Process Costing Production Report...Ch. 3 - Preparing a Process Costing Production Report...Ch. 3 - Prob. 4GBPCh. 3 - Prob. 5.1GBPCh. 3 - Prob. 5.2GBPCh. 3 - Prob. 6GBP
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- A job order costing system is most likely used by which of the following? a pet food manufacturer a paper manufacturing company an accounting firm specializing in tax returns a stereo manufacturing companyarrow_forwardWhich type of cost system, process or job order, would be best suited for each of the following: (A) TV assembler, (B) building contractor, (C) automobile repair shop, (D) paper manufacturer, (E) custom jewelry manufacturer? Give reasons for your answers.arrow_forwardWhich of the following is typically a process-costing firm? a. Paint manufacturer b. Custom cabinetmaker c. Large regional medical center d. Law office e. Custom framing shoparrow_forward
- Which of the following businesses would most likely use a Job Order cost system (compared to a Process cost system). A swimming pool installer A paper mill A business that manufactures chlorine An oil refineryarrow_forwardWhich method of determining product costs, job-order costing or process costing, would be more appropriate in each of the following situations?a. An Elmer’s glue factory.b. A textbook publisher such as McGraw-Hill.c. An Exxon oil refinery.d. A facility that makes Minute Maid frozen orange juice.e. A Scott paper mill.f. A custom home builder.g. A shop that customizes vans.h. A manufacturer of specialty chemicals.i. An auto repair shop.j. A Firestone tire manufacturing plant.k. An advertising agency.l. A law office.arrow_forwardA process costing system is most likely used by which of the following?A. airplane manufacturingB. a paper manufacturing companyC. an accounting firm specializing in tax returnsD. a hospitalarrow_forward
- 1. ABC company services office computer and equipment. Some customers bring their computers to the company'sservice shop; other customers prefer to have the company's service personnel come to their offices to repair theircomputers. What is the most appropriate costing method for ABC company?A. An activity-based costing systemB. A process costing systemC. A job-order costing systemD. An operation costing system 2. The debits in work-in-process are beginning work-in-process, direct labor, direct materials, and factory overhead.Assuming there are minimal items already completed, the account should be credited for production that iscompleted and sent to finished goods inventory. The balance is:A. Ending work-in-process (Debit)B. Ending work-in-process (Credit)C. ZeroD. Total production costs to be accounted for 3. Companies characterized by the production of heterogenous products will most likely use which of the followingmethods for the purpose of averaging costs and providing…arrow_forwardA job order costing system would probably be appropriate for a firm that produces a. automobiles.b. stained glass windows.c. DVDs.d. microcomputers.e. none of the above.arrow_forwardWhich of the following is true of job order cost systems? a.Job order cost systems provide product costs for each manufacturing department or process. b.Examples of companies that use job order cost systems would be oil refineries, paper producers, chemical processors, and food processors. c.Job order cost systems are not widely used. d.Job order cost systems are often used by companies that manufacture custom products for customers or batches of similar products.arrow_forward
- A process costing system is most likely used by which of the following? Group of answer choices A. airplane manufacturing B. a paper manufacturing company C. an accounting firm specializing in tax returns D. a hospitalarrow_forwardWhich of the following businesses would most likely use process costing? a. home construction b. flour mill c. website designer d. movie studioarrow_forwardA job order costing system is most likely used by which of the following?A. a pet food manufacturerB. a paper manufacturing companyC. an accounting firm specializing in tax returnsD. a stereo manufacturing companyarrow_forward
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