Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 3, Problem 3.1DI
Indicate whether each of the following statements is true or false.
1. Many hospitals use
2. A manufacturer of computer flash drives would use a job order cost system.
3. A
4. A process cost system keeps track of costs on job cost sheets.
Compare job order and process cost systems. (LO 1).C
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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
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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
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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…
Which of the following statements is not always true? Question 3 options: The job - order costing system is used by manufacturing companies. All costs used in job - ordering costing are actual costs. The job - order cost sheet is subsidiary to the work - in - process account. The job - order costing system is simpler to use than process costing because the record keeping requirements are less.
A job order cost accounting system accumulates and records product costs by jobs. The resulting total and unit product costs can be used to do all of the following except
a.compare actual costs to expected costs
b.make cost comparisons across similar jobs
c.analyze cost trends over time
d.create customer profiles for the sales staff
Chapter 3 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 3 - Identify which costing systemjob order or process...Ch. 3 - Contrast the primary focus of job order cost...Ch. 3 - What are the similarities between a job order and...Ch. 3 - Your roommate is confused about the features of...Ch. 3 - Sam Bowyer believes there are no significant...Ch. 3 - (a) What source documents are used in assigning...Ch. 3 - At Ely Company, overhead is assigned to production...Ch. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Sanchez Co. has zero units of beginning work in...Ch. 3 - Coats Company had zero units of beginning work in...Ch. 3 - Sanchez Co. has zero units of beginning work in...Ch. 3 - Hindi Co. started 3,000 units during the period....Ch. 3 - Clauss Company transfers out 14,000 units and has...Ch. 3 - Prob. 16QCh. 3 - What purposes are served by a production cost...Ch. 3 - As Trent Company, there are 500 units of ending...Ch. 3 - What is the difference between operations costing...Ch. 3 - How does a company decide whether to use a job...Ch. 3 - Soria Co. started and completed 2,000 units for...Ch. 3 - Reyes Company transfers out 12,000 units and has...Ch. 3 - Journalize entries for accumulating costs. (LO 2)....Ch. 3 - Data for Warner Company are given in BE3-1....Ch. 3 - Compute equivalent units of production. (LO 3), AP...Ch. 3 - Compute equivalent units of production. (LO 3), AP...Ch. 3 - Compute unit costs of production.. (LO 4), AP In...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Compute unit costs. (LO 4), AP Production costs...Ch. 3 - Prepare cost reconciliation schedule. (LO 4), AP...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Compute unit costs. (LO 5), AP Production costs...Ch. 3 - Indicate whether each of the following statements...Ch. 3 - Kopa Company manufactures CH-21 through two...Ch. 3 - The Assembly Department for Right pens has the...Ch. 3 - In March, Kelly Company had the following unit...Ch. 3 - Robert Wilkins has prepared the following list of...Ch. 3 - Journalize transactions. (LO 2), AP Harrelson...Ch. 3 - The ledger of American Company has the following...Ch. 3 - Journalize transaction for two processes. (LO 2),...Ch. 3 - In Shady Company, materials are entered at the...Ch. 3 - The Cutting Department of Cassel Company has the...Ch. 3 - The Sanding Department of Quik Furniture Company...Ch. 3 - The Blending Department of Luongo Company has the...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - The Polishing Department of Major Company has the...Ch. 3 - Prob. 3.12ECh. 3 - The Welding Department of Healthy Company has the...Ch. 3 - Remington Inc. is contemplating the use of process...Ch. 3 - Santana Mortgage Company uses a process cost...Ch. 3 - Compute equivalent units, unit costs, and costs...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - Compute equivalent units, unit costs, and costs...Ch. 3 - Answer questions on costs and production. (LO 5),...Ch. 3 - The Welding Department of Majestic Company has the...Ch. 3 - Fire Out Company manufactures its product,...Ch. 3 - Complete four steps necessary to prepare a...Ch. 3 - Thakin Industries Inc. manufactures dorm furniture...Ch. 3 - Rivera Company has several processing departments....Ch. 3 - Polk Company manufactures basketballs. Materials...Ch. 3 - Hamilton Processing Company uses a weighted...Ch. 3 - Determine equivalent units and unit costs and...Ch. 3 - CURRENT DESIGNS CDJ Building a kayak using the...Ch. 3 - Decision-Making Across the Organization Florida...Ch. 3 - Harris Furniture Company manufactures living room...Ch. 3 - CRITICAL THINKING Communication Activity Diane...Ch. 3 - Ethics Case R. B. Dillman Company manufactures a...Ch. 3 - In a recent year, an oil refinery Texas City,...
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- A 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_forward5) Which one of the following best describes a job cost sheet? a. It is a form used to record the costs chargeable to a specific job and to de total and unit costs of the completed job. b. It is used to track manufacturing overhead costs to specific jobs. C. It is used by management to understand how direct costs affect profitabi d. It is a daily form that management uses for tracking worker producti employee raises are based.arrow_forwardWhich of the following is true of job order cost systems? Â a.Job order cost systems provide product costs for each manufacturing department or process. Â b.Examples of companies that use job order cost systems would be oil refineries, paper producers, chemical processors, and food processors. Â c.Job order cost systems are not widely used. Â d.Job order cost systems are often used by companies that manufacture custom products for customers or batches of similar products.arrow_forward
- which of the following is not among the features of Job-order costing system Select one: O a. Work in process has a production report for each batch of products. O b. Many unique, high cost jobs. O c. Jobs built to customer order. O d. Costs accumulated by the job.arrow_forwardA 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 of the following statements is true? a. Job-order costing is used only in manufacturing firms. b. Process costing is used only for services. c. Job-order costing is simpler to use than process costing because the recordkeeping requirements are less. d. The job cost sheet is subsidiary to the work-in-process account. e. All of these.arrow_forward
- A process costing system Is most likely used by which of the following? airplane manufacturing a paper manufacturing company an accounting firm specializing in tax returns a hospitalarrow_forwardA 1.Describe the differences between process costing and job 5.4 costing.2. Distinguish between normal and abnormal losses and explain.3. Provide examples of industries that use process costing. 4. Why is cost accumulation easier with a process costing system compared with a job costing system? 5. What are equivalent units? Why are they needed with a process costing system?arrow_forwardWhich of the following statements are true? 1. A cost driver is a factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes direct costs. II. Job-order costing systems often use allocation bases that do not reflect how jobs actually use overhead resources. III. An employee time ticket is an hour-by-hour summary of the employee's activities throughout the day.arrow_forward
- A 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_forwardChapter 3 discusses job costing. Process costing was briefly discussed. Which company listed below would most likely use process costing. A. Engineering firm B. Law firm C. custom jewelry maker D. soda pop manufacturerarrow_forward
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